Lawyers for Tether and Bitfinex have moved for a dismissal of the case filed against them by New York’s Attorney General.
The New York Attorney General (NYAG) had charged Tether and Bitfinex with misconduct, but court filings for May 21 revealed that their lawyer has argued that the New York Supreme Court (NYSC) doesn’t have jurisdiction over the reported misconduct charges.
No Jurisdiction over the Case says Lawyers
According to the lawyers, the NYSC does not have jurisdiction over the case, whether on a personal or subject matter level. They also pointed out that they can’t appeal to the NYSC since neither of the two companies is operating out of the state and have not harmed any New York-based investors.
Their motion stated that the Office of the New York Attorney General started the proceedings supposedly to protect the city’s investors but decided to go after two businesses that don’t have anything to do with New York’s investors.
No Business Done in the State
The lawyers also iterated that while Tether and Bitfinex deal with virtual currency, New Yorkers are not allowed on their platforms. The two companies also don’t advertise or do business in the state. They also argued that Tether’s stablecoin is not covered by the Martin Act. The law only governs commodities and securities.
The case against the two crypto companies was filed in April by NYAG Letitia James and accused Tether and Bitfinex of defrauding the state’s investors by covering up an $850 million loss. At the time, James stated that the state required “virtual currency businesses to operate according to the law” and they’ll continue to defend investors when they’re cheated or misled by these companies.