Bitfinex responds: New York Attorney General’s Office maliciously wrote documents, $850 million was not lost but seized and protected

Mars Finance APP (WeChat: hxcj24) reported that Bitfinex issued an announcement in response to the allegations of the New York Attorney General's Office. Bitfinex said that earlier today, the New York Attorney General's Office issued an order trying to force Bitfinex and Tether to provide certain documents and seek some kind of injunctive relief. The New York Attorney General's court documents were written maliciously and are full of false assertions, including an alleged $850 million "loss" at Crypto Capital.

Instead, "we have been informed that these crypto capital amounts are not lost, but are in fact seized and protected," Bitfinex said. "We have been actively working to exercise our rights and remedies and to release these funds. Both Bitfinex and Tether are in strong financial shape. Both Bitfinex and Tether will fight this egregious overreach by the New York Attorney General's office. Bitfinex and Tether will vigorously challenge this, and all other actions by the New York Attorney General's office."

According to previous reports, the New York Department of Justice believes that Bitfinex used Tether reserves to make up for the loss of $850 million. If the accusation is true, then Bitfinex's behavior will be related to criminal malfeasance and will become the largest criminal case in the field of cryptocurrency in the United States, similar to the Mt. Gox theft case in Japan in 2014.