Crypto Exchange Blocked From Tether Reserves During Lawsuit
- N.Y. attorney general sued Bitfinex and cryptocurrency Tether
- Exchange contends New York has no jurisdiction in the matter
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Digital-asset exchange Bitfinex remains blocked from taking money from the cash reserves of the cryptocurrency Tether as a judge decides whether to dismiss a regulator’s lawsuit claiming the companies hid losses of more than $850 million.
New York Attorney General Letitia James sued the companies in April, saying executives cooked up a series of “conflicted corporate transactions” in which Bitfinex gave itself access to as much as $900 million of Tether’s cash reserves, which Tether repeatedly told investors fully backed its coin.