The court rejects the appeal of Bitfinex in the case of the loss of $ 850 million

The court rejected the appeal of Bitfinex in the case of the loss of $ 850 million

The court rejects the appeal of Bitfinex in the case of the loss of $ 850 million

The New York State Court of Appeals rejects the arguments of the Bitfinex crypto exchange that the case does not fall under its jurisdiction.  

Last year, New York prosecutors accused Bitfinex of losing $ 850 million corporate and client money, with the subsequent coverage of losses at the expense of the subsidiary project Tether. IFinex, which operates both the exchange and stablecoin, said at the time that it was working to recover funds deposited with Panamanian Crypto Capital, whose assets were seized and seized by several governments for financial fraud..

In parallel with attempts to return the money, Bitfinex filed an appeal, which argued that this case does not fall under the jurisdiction of the New York court, since the Tether coin is neither a commodity nor a security, the exchange is registered in the British Virgin Islands, and the central office is located in Hong Kong. The court rejected these arguments, citing that state residents had access to the trading platform up until 2017, and prosecutors opened an investigation in 2015.

Following the ruling, New York Attorney General Laetitia James said: «Even virtual currencies are not above the law».

Bitfinex representatives did not comment on the rejection of the appeal in any way, only a lawyer exchange said the company will respect the court’s decision.

text: Ivan Malichenko, photo: hashtelegraph