Court to Uphold Injunction Against Bitfinex

Also, Judge Joel M. Cohen emphasized that the question of whether the USDT is a security remains open
07 May 2019   1020

The New York State Supreme Court, represented by Judge Joel Cohen, ordered Bitfinex to provide the State Attorney's Office with documents on the loss of access to fiat funds for $ 850 million and upheld a injuction that does not allow Tether Limited to use its reserves for lending the exchange and other investment activities. This is reported by the CoinDesk.

The court recognized that the claims of the prosecutor’s office should be reviewed as not accurate enough to demonstrate the damage caused. Thus, during the week, the parties must jointly or unilaterally submit to the court a plan of changes to the text of the original injuction.

Judge Cohen emphasized that the question of whether the USDT is a security remains open. He asked the prosecutor's office to conduct a more thorough investigation and explain exactly how Tether Limited and Bitfinex violated the Martin Act (Martin Act) against fraud.

The question of whether these are securities, … is a threshold question that the respondents [mentioned]. I know they are traded, but whether [they qualify] is [another matter]. I recognize the point that banks don’t have all of the dollars available at a moment’s notice. I also recognize that you’re not banks, you’re not heavily regulated.
 

Joel Cohen

Judge, New York Supreme Court

The attorney’s office insisted that it had the right to regulate Tether’s activities, since USDT tokens are available for purchase by residents of New York on the secondary market through the Poloniex exchange.

We have enough information to know, and we have every reason to believe, that the Martin Act has been violated.
 

John Castellanos

Lawyer, New York Attorney General’s office

In late April, the Prosecutor General’s Office in New York for the first time reported receiving a court order against Bitfinex in connection with the alleged loss of the last $ 850 million and the concealment of this fact from market participants.

Representatives of the trading platform said that we are not talking about permanent loss. These funds are frozen in bank accounts of Panamanian processing Crypto Capital Corp. in four countries.

To ensure liquidity, Bitfinex was forced to ask Tether Limited for a loan and, according to the Prosecutor General’s Office, has already received $ 750 million from the company's reserves. In this department reviewed the composition of the crime.

Earlier, New York State Attorney General Letitia James asked the court to uphold the order. She warned the court about the high risks for Bitfinex users and USDT holders.

DEAPCOIN IEO to be Held at OKEx on 8.04

The project is planning to raise $2M a the price of 1 DEP on IEO will be $ 0.0025
25 March 2020   943

OKEx Exchange announced Wednesday the 11th initial exchange offering (IEO). It will be conducted by the DEAPCOIN Project (DEP) and will be held on April 8th.

As in previous OKEx campaigns, the selection of participants and the selection of the allocation coefficient will be carried out according to two criteria: the average daily balance of OKB and the trading volume on the exchange. For each of the groups, allocation of 400 million DEP tokens is allocated.

The price of 1 DEP on IEO will be $ 0.0025. Thus, the project intends to attract up to $ 2 million from OKEx users. Trading in USDT and USDK pairs will start on the same day.

The DEP token was released by DEAPCOIN to shape the economy around the PlayMining entertainment platform they are developing, where users can earn cryptocurrency during games. DEP is presented as an ERC-20 standard token, while game items on the blockchain will use the ERC-721 standard.

Despite the generally negative dynamics of the IEO space recently, the token of the previous placement of the OKEx platform - HyperDAO - that passed at the end of February is currently trading almost 3 times higher than the initial selling price.