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Tether warns of need to ‘cut off salary payments’ if NY OAG is permitted to ‘micromanage’ business

May 13, 2019, 5:32PM EDT

In a new filing with the New York County Supreme Court, the lawyers representing Bitfinex and Tether argue that the NY OAG is overreaching in seeking a preliminary injunction against the companies. According to the firms, "it is simply not the OAG’s purview to micromanage Tether’s business in this way."

In particular, the firms took issue with the NY OAG's restriction on related party transactions, asserting that "there is no basis to cut off the ability of tether holders who happen to be affiliated with Respondents to redeem their tether."

Furthermore, the Respondents state that the NY OAG's injunction may cripple Tether's operations: "While Tether does not anticipate that it will suddenly become unprofitable, OAG’s language would potentially require the company to cut off salary and other ordinary course payments in any given period if, for whatever reason, there was insufficient profit."

In response, Bitfinex and Tether's lawyers argue for a 45-day injunction rather than the indefinite injunction proposed by the NY OAG, characterizing the OAG's arguments as "inchoate claims that it concededly cannot articulate."

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