Sign up for The Paypers newsletter Follow The Paypers on LinkedIn Follow The Paypers on Twitter Follow The Paypers on Facebook
The Paypers, paypers, Insight in payments, News, Reports, Events
 advertisement
Cryptocurrencies

New York Supreme Court orders Tether to freeze transfers to Bitfinex

Friday 17 May 2019 | 11:33 AM CET

The Supreme Court has ordered Bitfinex and Tether execs and employees to stop loaning Tether’s reserves to Bitfinex, alongside a number of other stipulations.

Moreover, a US-based judge instructed crypto exchange Bitfinex and its affiliated stablecoin issuer Tether to turn over documentation about a loan and a line of credit Tether provided to Bitfinex. Specifically, the judge’s directives include: the following:

  • Tether cannot loan any assets to Bitfinex or other parties, except in the normal course of conducting its business;

  • Tether cannot distribute any funds from its reserves to executives, employees, or other individuals except for payroll and normal contractor, consultant, or vendor payments;

  • Neither Bitfinex nor Tether are allowed to modify in any way documents asked for in the New York Attorney General’s (NYAG) original subpoenas;

  • The injunction will expire in 90 days, but the NYAG’s office can petition the court to extend it two weeks before then.

The judge’s order comes after the NYAG secured a preliminary injunction freezing Tether’s assets, and asking for documents about a USD 625 million loan and a USD 900 million line of credit it offered to Bitfinex.

More: Link
 advertisement
 advertisement
 advertisement
 advertisement