Breaking: Bitfinex and Tether Seek 30-day Extension to Produce Critical Financial Document Before NYAG

Published by
Breaking: Bitfinex and Tether Seek 30-day Extension to Produce Critical Financial Document Before NYAG

iFinex Inc, the parent company of both Tether and Bitfinex has filed for a 30-day extension for the submission of key documents about Tether reserves and other financial operations in the ongoing lawsuit filed by NYAG.

The lawsuit filed by NYAG alleges that both Bitfinex and Tether were involved in a misappropriation of $850 million funds. This led to a long-drawn court battle and accusations against the stablecoin issuer and the crypto exchange Bitfinex. iFinex’s legal counsel on January 19 filed a court document seeking a 30-day extension four days after the previous deadline was set for January 15.

The official court filing read,

“The parties will need a few more weeks to produce the supplemental information, for OAG to review the production, and to discuss further among themselves what if any further proceedings may be necessary.”

Bitfinex is accused of borrowing 850 million US dollars from Tether to cover its losses, however, when caught they said it was a loan from the stablecoin issuer. The proceedings of the lawsuits also asked for Tether’s audit report about their US Dollar reserves backing the circulating USDT in the market, something Tether has avoided all along despite claiming to be 100% backed. Tether quietly changed that claim back in 2019 from 100% to 74% of its USDT supply being backed by Dollar reserves while the rest it claims is backed by a diverse portfolio of assets that also involved bitcoin.

Advertisement

What’s the Tether & BitFinex FUD About?

As a stablecoin issuer Tether is liable to back the circulation supply of its token by an equal amount of USD reserves, however, Tether’s reluctance to get it’s reserved audited by a third party has raised many questions in the past. This obscurity around the reserve has also led to a Bitcoin FUD where many have claimed that Tether has pumped BTC price from time to time.

The FUD was inflated with an article doing the rounds about a possible connection between Tether’s USDT flow and BTC market price. Willy woo, a prominent bitcoin analyst debunked the claims.

The outcome of the lawsuit and especially when iFinex submits the key financial documents would play a key role in the crypto market especially at a time when the race for stablecoin dominance in the US market and crypto space is growing.

Advertisement

Share
Prashant Jha

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy

Solana increased in price by 5% to approximately $219 following a $2 billion Solana treasury…

October 2, 2025
  • 24/7 Cryptocurrency News

XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization

The XRP Ledger (XRPL) has launched the Multi-Purpose Token (MPT) standard, designed to simplify and…

October 1, 2025
  • 24/7 Cryptocurrency News

SEC Puts Crypto ETF Approvals On Hold Following U.S. Government Shutdown

The U.S. Securities and Exchange Commission has announced plans to streamline its operations amid the…

October 1, 2025
  • 24/7 Cryptocurrency News

Pi Network Adds DEX and AMM Features To Expand Pi Coin’s Utility

Pi Network has now added two new features to its Testnet. These are a decentralized…

October 1, 2025
  • 24/7 Cryptocurrency News

October Fed Rate Cut Odds Rise After Weak U.S. Labor Data, Bitcoin Surges

U.S. private payrolls unexpectedly fell in September, raising market bets that the Federal Reserve will…

October 1, 2025
  • 24/7 Cryptocurrency News

Hashdex Adds Cardano to Crypto Index Fund as ADA Gains SEC Listing Eligibility

Asset manager Hashdex has officially included Cardano in its Nasdaq Crypto Index U.S. ETF. This…

October 1, 2025