A New York judge has delayed making a decision on whether Bitfinex and Tether need to turn over documents to the state Attorney General.
Supposed New York residents and companies that used Bitfinex's trading platform were actually "foreign entities," according to a new filing by the exchange's attorneys.
Metropolitan Commercial Bank maintained accounts for Tether and affiliated companies for less than half a year before shutting them down.
The New York Attorney General's Office (NYAG) has submitted a series of new evidence to prove the crypto exchange Bitfinex and Tether had served New York customers longer than it claimed.
Bitfinex said it has paid back $100 million of the $700 million borrowed from stablecoin issuer Tether.
A New York Supreme Court judge ordered stablecoin issuer Tether to refrain from loaning any funds to Bitfinex or other parties during an ongoing investigation by the NY Attorney General.
Tether has asked a judge for more leeway to use its cash amid the New York Attorney General's investigation of it and Bitfinex.
A judge has ordered Bitfinex to turn over documents to the New York Attorney General, but only once the scope of the request is narrowed.
Bitfinex customers may suffer if it can't tap a credit line from Tether, the firms' lawyers say in a new filing in the New York Attorney General case.
The NYAG's office has told a court that Bitfinex and Tether must turn over documents detailing the companies' recent financial maneuvers.
Tether's general counsel told the New York Supreme Court that it can only back about 74% of USDT in circulation as of Tuesday.