The New York State Attorney General (NYAG) Letitia James has requested the disclosure of documents concerning an alleged deal made between cryptocurrency exchange Bitfinex and stablecoin operator Tether. The NYAG’s memorandum of law was filed on May 3.

The memorandum of law calls for more transparency and claims “that Bitfinex and Tether misled their clients and investors.” The statement also explains why the Office of the State Attorney General feels the need to request said documents:

“While that and other discrepancies do not change the core issues in this case [...] they only heighten the OAG’s [Office of the Attorney General’s] need to obtain documents and information in a timely, organized fashion so that the OAG may understand what has taken place, and what continues to take place, at these companies.”

The document also notes that the authorities have “craft[ed] a narrow injunction to preserve the status quo and prevent Respondents from further dissipating the cash reserves that supposedly back the tether virtual currency, pending completion of the OAG's investigation.”

The NYAG also states that the ongoing case has not prevented Bitfinex and Tether from continuing “to operate their businesses in the normal course, as they have continued to do since the injunction.”

As Cointelegraph previously reported, in late April, the NYAG alleged that Bitfinex lost $850 million and subsequently used funds from affiliated firm Tether to covertly cover the shortfall.

Shortly after, Tether and Bitfinex responded to the accusations with a statement claiming that court filings by the New York Attorney General’s office were “riddled with false assertions.”

Yesterday, Cointelegraph reported on documents released by a Bitfinex shareholder that confirm that the exchange is planning a nearly $1 billion initial exchange offering of its new token, LEO.

Earlier this week, an indictment of two individuals on multiple counts revealed an apparent connection to the shadow banking services that were used by crypto exchanges Bitfinex and QuadrigaCX.