“All that remained was the Attorney General’s ongoing investigation, in which, by statute, the courts have no further role at this stage,” according to the Court of Appeals.
Additionally, the Appeals Court explained, “Here, petitioner is investigating, inter alia, whether respondents have committed fraud (as broadly defined in the Martin Act) ‘within or from’ New York (GBL 352) by making untrue claims about the cash reserves backing tether and their ability to honor customer withdrawal requests. She has sought documents and information from respondents going back to 2015, which is well within the applicable six-year statute of limitations (CPLR 213[9])…”
Furthermore, the Appeals Court expounded, “Accordingly, petitioner has demonstrated that respondents’ activities in New York were sufficiently related to the subjects of petitioner’s investigation to satisfy specific personal jurisdiction for the purposes of GBL 354 … Petitioner has made a sufficient showing of personal jurisdiction in the context of this Martin Act investigation for Supreme Court to have issued the ex parte order pursuant to GBL 354. The Martin Act authorizes the Attorney General to investigate securities or commodities fraud (as those terms are defined by the Act) ‘within or from’ New York (GBL 352). Petitioner may properly investigate a foreign entity if she ‘has a reasonable basis for believing that [it] has violated a New York statute.'”
