AG James issued subpoenas to iFinex, Tether Holdings, and their affiliates to submit documents and information regarding their activities. The companies’ counsel accepted service of the subpoenas and produced some of the information and documents requested by the Attorney General.
In early 2019, AG James’ investigation revealed information regarding iFinex and Tether Holdings’ transaction that might be a conflict of interest. The Attorney General raised her concerns regarding the matter, but the respondents completed the deal.
AG James perceived the transaction as a sign that iFinex was experiencing a serious financial problem and Tether Holdings’ cash reserves supporting Tether would be squandered. She was also concerned that the respondents misled their customers regarding the matters.
Due to her concerns, the Attorney General sought an ex parte order from the New York Supreme Court requiring iFinex, Tether Holdings, and their affiliates to produce documents, testify under oath and to issue a preliminary injunction or stay that it sees proper and expedient pursuant to the General Business Law § 354.
