News by InvestinBlockchain: Abhimanyu Krishnan
The New York Supreme Court has ordered Tether to stop loaning funds to its associated exchange Bitfinex.
Judge Joel Cohen said,
The Court finds that the preliminary injunction should be tailored to address OAG’s legitimate law enforcement concerns while not unnecessarily interfering with Respondents’ legitimate business activities.
The orders include Tether not loaning any assets to Bitfinex or other parties, distributing any funds to executives, employees or others except regular business-related purposes, and modifying documents asked for by the Attorney General’s office.
Tether and Bitfinex have been under investigation for the fact that Bitfinex has reportedly covered up a loss of $850 million through the use of illicit funds. Both entities have said that they would fight the case, and the incident has many worrying about the stability of Tether and Bitfinex.