July 10, 2020 Bitfinex to face suit claiming that it hid $850 million in lost client funds.

The cryptoasset exchange, Bitfinex, is to face a suit from New York State alleging that the company hid $850 million in lost client funds, following a ruling on Thursday by the New York State Appeals Court. The prosecutors had argued in April 2019 that the exchange had lost the funds, belonging to its clients, and then attempted to hide the losses via the Tether stablecoin, which is also operated by Bitfinex’s parent company, iFinex. Following the ruling, Bitfinex’s legal counsel commented that the company has accepted the ruling and declined to offer any further comments.