The New York Supreme Court, responding to the New York attorney general's complaint against Bitfinex, asked it to change the scope of the injunction

Coindesk (Coindesk)reportsA judge in New York has ordered Bitfinex, the cryptographic exchange, to hand over documents relating to an alleged cover-up of $850m in losses, as well as a subsequent loan from Tether, the issuer of stablix, but not immediately.

At a hearing Monday afternoon, New York Supreme Court justice Joel m. Cohen said the preliminary injunction obtained by the New York attorney general's office in late April should remain in place, at least in part. But judge Cohen challenged the scope of the injunction.

Lawyers for plaintiff NYAG and defendants Bitfinex and Tether have a week to hammer out a joint or separate proposal that would require the scope of the injunction, which the judge will rule on. The judge considered the two parties to be rational groups and gave them a week to either make a change or propose a change. If coordination is really difficult, separate proposals should be submitted to the court.

In other words, the New York Supreme Court denied both the motion to rescind, retain or amend the order of the New York attorney general and the motion to rescind or retain the injunction in its entirety, but the court granted the motion to amend "the substance and time frame of the injunction."

Under the terms of the injunction, Bitfinex and Tether were forced to hand over all documents relating to the financing operation involving about "$850m" and immediately stop any further borrowing.

Lawyers for Bitfinex and Tether filed for the preliminary injunction to be lifted or amended last week, arguing that Bitfinex's inability to use Tether's money is harmful to bitcoin exchanges and the broader cryptographic market (a claim they repeated in a separate filing on Sunday). Lawyers for NYAG said the injunction was narrow and wouldn't have a significant impact on the operations of Bitfinex or Tether.

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