Tether and Bitfinex Double Down on Claim of No Customers in New York

Attorneys of Bitfinex and Tether, who are in the process of attending the New York Attorney's Office (NYAG), filed a few cases on July 22, stating that the companies were never serving their clients in New York.

In this paper, attorney Stuart Hoegner pointed out that the terms of the Bitfinex service provided that the clients who transacted were foreign entities:

"By Bitfinex and Tether Terms of Service, Acceptable Contracting Parties (" ECPs ") negotiating with Bitfinex or Tether must be non-affiliated entities. While these affiliates may have shareholders or staff resident or having contacts with the United States or New York, Bitfinex and Teter customers are themselves, outsiders ... Bitfinex and Tether do not trade with any PCU from New York. "

In the second file, representatives of Steptoe & Johnson LLP and Morgan, Lewis & Bockius LLP, wrote:

"... due to personal jurisdiction, the KGR [State Attorney's Office] can not show indictments engaged in a professional activity intentionally directed to New York KGR tries to confuse the case by referring to isolated instances in which foreign clients of respondents have shareholders or other staff in New York, but in such circumstances, participants of the interviewees - those with whom the respondents actually deal with doing business - are foreign entities. "

Also, lawyers claim that although NYAG has shown that the companies were serving New Yorkers, they did not find that investors were affected by the company's business.

They claim that the dozens of documents NYAG have filed to establish a relationship between New Yorkers and New York residents shows only "a multitude of different and unconnected contacts in New York," and not evidence that investors are hurt. The deposit further shows:

"After an extensive discovery of jurisdiction, the BVG did not show any aspect of the relationship between Cryptocurrency Capital or the borrowing transaction - under any order under § 354 - in any way affected New York. KGR did not identify any New York customer who allegedly seduced or even considered by supporting Tether, nor any New Yorker who suffered the injury. "

The bank's spokeswoman said that Tether kept their accounts for only five months and that their activity was negligible in that period.


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