November 26, 2020

The court rejected the appeal of Bitfinex in the case of the loss of $ 850 million

The court rejected the appeal of Bitfinex in the case of the loss of $ 850 million

The New York State Court of Appeals did not accept the arguments of the Bitfinex cryptocurrency exchange that the case does not fall under its jurisdiction.

New York City Prosecutor Blames Last YearBitfinex in the loss of $ 850 million of corporate and client money, with subsequent coverage of losses from the funds of a subsidiary of Tether. The iFinex company, which manages both the exchange and stablecoin, said at the time that it was working on the return of funds deposited in the Panamanian company Crypto Capital, whose assets were arrested and seized by the governments of several countries for financial fraud.

In parallel with attempts to return money, Bitfinexfiled an appeal alleging that this case does not fall under the jurisdiction of the New York court, as the Tether coin is neither a commodity nor a security, the exchange is registered in the British Virgin Islands and its head office is located in Hong Kong. The court rejected these arguments, citing the fact that residents of the state had access to the trading platform until 2017, and the prosecutor's office began an investigation in 2015.

Following the decision, New York Attorney General Letizia James said: “Even virtual currencies are not above the law.”

Representatives of Bitfinex did not comment on the rejection of the appeal, only the exchange lawyer said that the company would respect the court’s decision.

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