Bitfinex must face allegations for the $850M in lost funds

Bitfinex vs. NY

As published by Bloomberg, the judge has not granted iFinex’s motion to dismiss based on the fact they do not operate in New York and hence the New York Attorney General’s office would not have jurisdiction over them. The NYAG Letitia James accused them of covering an $850 million loss whom also stated: “Today’s decision validates our office’s ability to use its broad and comprehensive investigative powers to protect New Yorkers. Not even virtual currencies are above the law. We are pleased with the court’s decision, and will continue to protect the interest of investors in the marketplace.

The Accusation & Explanation Given

After a long and arduous process, it has decided by the court that Bitfinex must face New York State over the allegations made last year about an $850 million cover-up. The exchange was accused of using its ties with Tether to cover that loss. This has been explained as a loan taken from Tether, with $200 million of it having been paid back.

Crypto & The Law

Generally speaking, it is often viewed by many that crypto falls outside of the scope of the law and that is beneficial for its adoption. This is far from the truth as without legal boundaries to protect investors’ interests, scams like PlusToken would have the ability to recreate themselves and siphon large amounts of capital with little to no repercussions. Regulations will also ease the minds of many whom remain on the ledge of entering this asset class, which can boost adoption further.

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