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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.

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