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.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now