According to a court filing, the New York State Supreme Court has ruled that the New York Office of the Attorney General (NYAG) will have jurisdiction over the well-known cryptocurrency exchange Bitfinex. The exchange is currently being investigated for alleged fraud and the spreading of misleading information to investors.
Judge Joel Coehn dismissed a motion promoted by Bitfinex’s defense to terminate the action initiated by the NYAG which seeks to prosecute Bitfinex under New York law. The Attorney General office claims that the cryptocurrency exchange, in association with Tether (USDT), played an important role in the covering of an $850 million loss, misleading investors in the state of New York.
The case has already cost the crypto exchange more than half a million dollars in attorney fees to fight the allegations held by the Attorney General. Jurisdiction over the matter has also been a difficulty for the court, with Tether and Bitfinex claiming that neither firm served customers in the New York estate. According to the defense, the state should be able to prove that the exchange served customers in the NY state, and in case it did, it should also prove that said customers were harmed by the exchange or the stablecoin issuer’s alleged actions.
Unfortunately for Bitfinex, the Attorney General was able to prove that United States-based users are still able to access the platform by simply lying on their query about their geographical location. Judge Cohen had no choice but to deny Bitfinex’s motion to terminate the NYAG’s action.
