According to a new document from the New York State Attorney General's Office (NYAG), the related companies Bitfinex andTether gradually depleted its reserves to support the stablecoin USDT.
Document by ForkLog on Scribd
In a petition filed with the Supreme Courtthe prosecution is ready to prove the fact of a close relationship between the companies in attempts to conceal the loss of $ 850 million as a result of a mixture of corporate funds and the assets of investors, fake security Tether and deceiving investors. NYAG representatives are also confident that the missing funds "are unlikely to be refunded."
At the same time, the prosecutor’s office called “premature” the conclusion that Tether is not a commodity or a security. Also, according to NYAG, the LEO exchange token may be a security.
“The defendants conducted another major financial transaction - they issued about a billion LEO. This new virtual asset resembles a debt security. ”, - representatives of the prosecutor’s office emphasized.
It is also noteworthy that the financial director of Bitfinex, Giancarlo Devazini, who appears in the case, signed documents both from the exchange and Tether.
Recall that since April, the stock exchange has been dragged into the judicialthe trial against the New York Attorney General's Office in the case of concealing the loss of more than $ 850 million of client funds in the accounts of the Crypto Capital processing, whose founders are accused of money laundering.
Bitfinex leaves no attempt to accessfrozen funds, and in October the exchange issued a statement according to which it not only did not help Crypto Capital with money laundering, but also became a victim of fraud.
In July, NYAG Raised New AccusationsBitfinex and Tether. The agency saw signs of unregistered securities in UNUS SED LEO tokens. Representatives of the prosecutor's office also argue that despite Bitfinex's statement that it has not been working with investors from New York since mid-2018, the site nevertheless provided services to residents of this state.