The document of the attorney general of NY, with the request to seize each document of the company that controls Bitfinex.
A very difficult period is expected for society.
SUPREME COURT OF THE ST A TE OF NEW YORK
COUNTY OF NEW YORK
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In the Matter of the Inquiry by LETITIA JAMES,
Attorney General of the State ofNew York,
Petitioner,
Pursuant to article 23-A of the New York General
Business Law in regard to the acts and practices of
iFINEX INC., BFXNA INC., BFXWW INC.,
TETHER HOLDINGS LIMITED, TETHER
OPERATIONS LIMITED, TETHER LIMITED,
TETHER INTERNATIONAL LIMITED
Respondents,
in promoting the issuance, distribution, exchange,
advertisement, negotiation, purchase, investment advice
or sale of securities or commodities in or from New
York State.
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At the Ex Parte Part of
the Supreme Court of the
State of New York, 60
Centre Street, City and State
of New York, on the J:f'fh,
of April 20 19. JAM'
-f AL~ , HON. DEBRA A.
[PROPOSED) EX P ARTE
ORDER PURSUANT TO
GENERAL BUSINESS LAW
§354
Date Filed:
Upon the application in writing ~f Letitia James, Attorney General of the State of New
York, for an order pursuant to General Business Law ("GBL") § 354, and upon reading and filing
f--th'V
the n:ation of Brian M. Whitehurst, Assistant Attorney General, dated April 24, 2019, with
exhibits.A through M thereto, and the accompanying memorandum of law, dated April 24, 2019;
it being shown that:
WHEREAS the Attorney General has determined to commence an action under Article
23-A of the GBL against the above-captioned Respondents, iFinex Inc., BFXNA lnc., BFXWW
Inc. (collectively, "Bitfinex"), Tether Holdings Limited, Tether Operations Limited, Tether
Limited, and Tether International Limited (collectively, "Tether," and together with Bitfinex,"Respondents"), and that the production of certain documents, books and records.is material and
necessary to the action that the Attorney General has determined to bring; and
WHERAS pursuant to GBL § 354, it is this Court's duty to grant the Attorney General's
application for an order directing those mentioned in the application to produce such papers,
documents, and books and records; and
WHEREAS pursuant to GBL § 354 it is expedient and proper to grant certain
preliminary injunctive relief against Respondents because alleged fraudulent practices of
Respondents threaten continued and immediate injury to the public and that the potential
dissipation of Respondents' assets would render a judgment directing restitution or disgorgement
ineffectual; it is hereby
ORDERED that Respondents appear before the Honorable Jf'"-eV'tnv f. LI b~ /e#J
Rt~ of the Supreme Court, or any other Justice or Referee of this Court as may be directed at Part 'i?6
in Room f!!l_, at the courthouse located at 60 Center Street, New York, New York, or at any
~1 - .
other place as this Court may direct, as fo llows: on the .P'd of~ 20 19, at /0 a.m.~, and
on any adjourned date and time thereafter, but not later than 30 days after the date of this order,
to turn over originals, wherever located, whether in their possession, custody, or control, or if the
originals are unavailable, copies of the following dated (unless otherwise specified) from January
I , 2015 to the present:
- All documents and information requested in the Subpoenas issued by the Attorney
General to Respondents dated November 27, 2018; - All documents and information required by the Attorney General in a letter to
Respondents dated February 26, 20 19;111. All documents concerning Bitfinex users, accounts, clients ,or customers that
reside or are believed to reside, do business, or are believed to do business, in
New York;
1v. All documents concerning holders of tether that reside, or are believed to reside,
in New York;
v. All documents and communications concerning any business relationship with
any New York-based, or New York licensed, company, in whatever regard;
v1. All documents and communications regarding any transaction, of whatever
nature, to loan, extend credit, encumber, pledge, or make any other claim, of any
variety or description, on the U.S. dollar reserves underlying tethers, to Bitfinex
or any other entity;
v1 1. All documents and communications regarding any transaction, of whatever
nature, to purchase, borrow, disperse, or loan tethers to or from third pan:ies,
including between Tether and Bitfinex, wherever located;
v111. All documents evidencing all requests, orders, or demands for U.S. dollar
withdrawals from the Bitfinex trading platform, including the amount requested,
date the request was received, date the request was fulfilled, date the request was
cancelled, and status of still-pending requests, since January 2018;
1x. All documents evidencing each order or request for purchase, issuance, or
redemption of tethers since January 1, 2017, and which include the date of the
order/request, the date on which it was executed, the amount of tether
purchased/issued/redeemed, the name and wallet address of the
purchasing/ordering/requesting person or entity, date any such
purchase/order/request was cancelled, and status of any still-pending
purchases/orders/requests;
x. A current accounting of a ll Bitfinex and Tether corporate, banking, trading, and
client accounts, including but not limited to those holding U.S. or foreign
currency, or virtual currency, wherever located;
x1. Identification of all New York and United States customers of Bitfinex whose
funds were provided to Crypto Capital and the amount of any such outstanding
funds;
x11. Respondents' tax filings for the years 2017 and 2018;
x111. A report, no less often than weekly, with supporting documents and
communications, evidencing any issuances or redemptions of tethers to or from
Tether or Bitfinex, which shall include identification of the purchaser or redeemer
of tether, the amount of tethers purchased or redeemed, how long the purchase orredemption request took to fulfill, the wallet address the tethers were sent to/came
from, and how the tethers were paid for/paid out;
xiv. Identification of all Eligible Contract Participants ("ECPs") controlled by U.S.
persons trading, past or present, on the Bitfinex trading platform or invested in
tether;
xv. All documents and communications concerning any decision to permit any ECP
to trade on the Bitfinex platform or to invest in tether, including, but not limited
to, all copies of any ECP certification and evidence provided to Respondents by
ECPs; and
xv1. All other documents that may be requested by the Attorney General or a
designated assistant during the course of this investigation.
ORDERED that all Respondents, their directors, officers, principles, agents, employees,
contractors, assignees and all other persons acting, or having acted, in aid or furtherance of the
same are hereby preliminarily restrained from violating Article 23-A of the GBL, and from
engaging in fraudulent, deceptive, or illegal acts, and are further restrained and enjoined from
employing any device, scheme, or artifice to defraud or to obtain money or property by means of
false pretense, representation, or promise, including but not limited to: - Further action by Bitfinex or Tether to access, loan, extend credit, encumber,
pledge, or make any other claim, of any variety or description, on the U.S. do llar
reserves held by Tether; - Making any distribution or dividend to any principle, executive, employee, agent,
investor, or associate of Bitfinex and Tether from funds that have been loaned,
extended, pledged, or otherwise taken from the U.S. dollar reserves held by
Tether; and - Directly or indirectly tampering with, mutilating, altering, erasing, removing,
destroying or otherwise altering or disposing of any and all books, records,
documents, files, correspondence, assets, accounts, personnel files, cassette tapes
or other recordings of any type, computers, computer or other disks and hard
drives, other types of tapes and document recordings, computer records or
videotapes of any type, however created, evidences of electronic transmissions or
documents, produced or stored, or other tangible items, wherever located,
including but not limited to places of business and home addresses, residences and places of storage, relating to any relevant or potentially relevant documents,
communications, or information called for by the subpoenas dated November 27,
2018, the letter of February 26, 20 18, or in connection with the Attorney
General's investigation, or this Order, including but not limited to personal
communications of Bitfinex and Tether principles, employees, agents, contractors,
investors, or associates on encrypted devices or from "ephemeral" or other self-
deleting applications, and it is further
ORDERED that service of a copy of the Order, and the papers upon which it was
granted, on counsel for Respondents, on or before the a,;fl~ay of April, 20 19, be deemed
sufficient service thereof.