Yesterday,inManhattan,BitfinexandTetherfiledamotiontodismisstheproceedingbroughtbytheNewYorkAttorneyGeneral’sofficeonthegroundsthat(1)theAttorneyGeneral’sofficelacksjurisdictionoverBitfinexandTether,whichdonotdobusinessinNewYorkstate;(2)NewYork’sMartinActdoesnotapplytothecompanies’businesses;and,(3)theMartinActcannotbeusedextraterritoriallytocompelaforeigncorporationtoproducedocumentsstoredoverseas.BitfinexandTetheralsosoughtanimmediatestayoftheAttorneyGeneral’sdocumentdemands.
Today,theHon.JoelM.CohenoftheNewYorkSupremeCourt(CommercialDivision)enteredanordergrantingourmotionforanimmediatestayofthedocumentdemands,requiringthecompaniestoproduceonlydocumentsandinformationrelevanttothelimitedissueofwhetherthereispersonaljurisdictionoverthecompaniesinNewYorkbutstayingthedocumentorderinallotherrespects.JusticeCohenscheduledahearingonourmotiontodismissforJuly29,2019.
WewelcomeJusticeCohen’sdecision,whichreflectsthatourmotionraisessignificantlegalchallengestothevalidityoftheAttorneyGeneral’sactions.
ThisorderisanothervictoryintheongoingdefenceofourbusinessesagainsttheNewYorkAttorneyGeneral’soverreach,anditcomesontheheelsofJusticeCohen’srulinglastweekgrantingourmotiontosignificantlynarrowtheinjunctionagainstourbusinessesobtainedbytheAttorneyGeneral.WelookforwardtocontinuingtochallengetheNewYorkAttorneyGeneral’sunmeritoriousclaims,andwewillcontinuetovigorouslyprotectourcustomersandassertourrightsagainstthosemakingfalseandunsupportedclaimsagainstus.
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