Bitfinex filed for withdrawal: no fraud, no victims
The Block is in The afternoon of May 6reportsIFinex, the parent company of Bitfinex and Tether, sought to quash the court order in response to an earlier allegation that it had concealed a total loss of 850 million yuan in customer and company funds.
"Because it was issued on the basis of incomplete or incorrect facts and incorrect legal standards." Bitfinex and Tether argue that,"There is no fraud, and no 'victims' need strict injunctions to protect them."
Bitfinex has responded to NYAG's findings on its website, the first official response.
In its May 5 filing, iFinex said the office of the New York attorney general (NYAG) had not even explained how Tether (USDT) was defined as a security or commodity covered by the *Martin Act.
IFinex also said the attorney-general needed a power base that could "regulate this area" and that "a lot of regulation would not bring the corresponding benefits because there is no fraud and not much harm."
Tether disclosed that its reserves may include loans made to affiliates prior to the credit transaction facility, and USDT holders may redeem or sell their Tether at any time, including now, the filing said. Tether claims it has "ample reserves to meet demand".
IFinex also noted that NYAG misused the word "investors" when referring to Bitfinex and Tether's clients, who are not investors and "have no right to the same disclosure as investors."
Bitfinex and Tether argued that the preliminary injunction "would not protect anyone and would cause significant damage to Bitfinex and Tether."
*Martin Act: the Martin Act. New York's anti-fraud law is widely regarded as the country's toughest blue-sky law. It was passed in 1921, giving the New York attorney general broad enforcement authority to investigate securities fraud and to bring civil or criminal charges against people suspected of violating the act.
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