Altcoin News: The Court Supported the Requirement of the Prosecutor’s Office to Ban Bitfinex Lending from the Reserves Tether

May 17, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

On Thursday, a New York court issued a decree against the Bitfinex exchange and issuer of stablecoin Tether on the provision of documents related to their credit relations. In addition, managers and employees of Bitfinex and Tether were prohibited from using the reserves of the latter for lending to the exchange.

The court found it necessary to issue a temporary ban as a reaction to the well-founded fears of the prosecutor’s office, without carrying out undue interference in the defendant’s full business, the resolution says.

In particular, Tether is prohibited from transferring any assets of Bitfinex or to other persons unless this is required by normal business practices; Tether is prohibited to provide funds from its reserves to managers, employees and other persons, if these operations are not associated with the payment of salaries and other standard payments; Bitfinex and Tether are not allowed to modify the documents requested by the prosecutor’s office in any way.

The interim measures will be valid for 90 days, but the prosecutor’s office may issue a request for an extension.

Bitfinex on its website commented court decision, stating that she was satisfied with them.

“We believe that the court’s decision today leaves no doubt that both Tether and Bitfinex are entitled to run their businesses in the ordinary course, even during the short period when this now narrowed preliminary injunction is in place.”

Author: Marko Vidrih