iFinex Inc., which operates Bitfinex Bitcoin Exchange and parent company Tether Limited, said that the court order, which was previously achieved by the Attorney General of the State of New York, is based on incomplete and incorrect facts, as well as the wrong legal standard. The company denies that fraud has taken place or is taking place, and also claims that there are no victims that this injunction is protecting.
In the iFinex document, it stressed that the New York Attorney General’s Office did not explain how exactly USDT being qualifies as a security or commodity and why it is subject to the so-called Martin Act on counteracting fraud. The company also pointed out the fact that the jurisdiction of the department in relation to Tether is vague, and this question needs to be clarified before the defendants start to go to meet the investigation.
Attorneys at the Hong Kong Stock Exchange added that, due to the prescription, Tether Limited reserves of more than $ 2 billion were frozen indefinitely, which is detrimental to investment activities. In their opinion, such active intervention by the Prosecutor General’s Office is unreasonable.
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At the same time, the company noted that Tether had updated the USDT Stablecoin policy on the official website, after which users could and can sell their tokens if they wish. The exchange operator explained that Bitfinex had never undertaken to inform users of all the information that they may consider important.
The Prosecutor General’s Office also incorrectly calls users of the site and USDT holders investors, giving them additional rights in the context of access to information, lawyers say.