Bitfinex Argues To Dismiss Lawsuit By NY Attorney General

Today Bitfinex In Court To Argue To Dismiss A Lawsuit By NY Attorney General
Crypto space is mixed this morning with 7 coins in the Top 10 negative
Crypto volumes light with activity on major venues below 30-day averages
Crytpo and Bitcoin Futures Story of Day

Crytpo and Bitcoin Futures Story of Day


OVERNIGHT CRYPTO MOVERS

Bitcoin U$9,514.00; +0.24% 
XRP U$0.3103; -0.07%
Ethereum U$209.85.; +0.36% 
EOS U$4.2423; -0.91%
Litecoin  U$89.81; +1.15% 
Bitcoin SV  U$147.38; -0.30%

CRYPTO STORY OF THE DAY

Today Bitfinex (BFX) Will Be Heading To Court To Argue To Dismiss A Lawsuit Brought On By The New York Attorney General - BFX's Claim Is That The AG Has No Jurisdiction To Order A Stay On Their Operations As They Do Not Allow NY Residents To Access Their Exchange - On Friday, Crypto News Platform The Block Ran A Story Titled, 'New York Users Can Still Use Bitfinex With A Minor Fib And The Click Of A Button

As the title implies, the article suggests it is relatively easy for NY residents to get around restrictions on the platform. The Block cited an anonymous source who supplied screenshots of their referencing themselves as a New York resident in withdrawal notes etc... The article drew a response from BFX General Counsel Stewart Hoegner who said the article was misleading as the user had been flagged repeatedly and asked for additional information. Hoegner further implied that the platform cannot be immediately held accountable for users that lie / commit fraud.

Takeaway:  The idea that a platform is solely responsible because a NY resident provided fraudulent information in their sign-up seems silly. Furthermore, from our own experience, BFX is extremely diligent in their KYC process and requests updated information far more frequently than, for instance, a bank. While Hoegner clearly showed his frustration to the spirit of the story it seems unlikely that the article will have any impact on today's actual proceedings. The focus currently is specifically around particular corporates BFX did business with and if the activities faced their domestic entities or their foreign Eligible Contract Participants (ECPs).

About the Author

FRNT Financial is an Institutional Brokerage which offers clients a variety of products along with research & analytics in the crypto-space.