New York Supreme Court Judge Joel M. Cohen has ordered digital asset exchange Bitfinex and Tether Ltd. to submit documentation regarding the issuance of a loan and a line of credit.
Tether Ltd., the issuer of the world’s most dominant stablecoin, USDT, had reportedly extended a line of credit to Bitfinex so that the exchange operator could maintain its business operations – after losing $850 million. As reported, the funds were being managed by Crypto Capital Corp., a Panama-based payments processing service provider. However, Crypto Capital has claimed its funds (under management) were seized by authorities in Portugal, Poland, and the US.
In April 2019, Crypto Capital’s managers, Ravid Yosef and Reginald Fowler, were indicted by the US Department of Justice (DoJ) for allegedly offering illicit banking services to various crypto-related firms.
“Legitimate Law Enforcement Concerns” Should Be Addressed
Last week, a preliminary hearing on the matter had been held in New