The trial of the New York City prosecutor's office with these companies has been going on since April. Today's hearing was devoted to the issue of determining the powers of the prosecutor's office to conduct an investigation.
Judge Joel Cohen stated that he would need more time to make a final decision on whether to withdraw the case or to oblige Bitfinex and Tether to comply with the plaintiff's claims.
Today's verdict means that both companies can continue to operate, but Bitfinex still cannot borrow from the Tether reserves.
The New York City attorney's office insists that Bitfinex has used Tether's reserves to hide the $850 million loss it incurred after sending the payment company and is trying to obtain documents related to the loan.
On Monday, the lawyers of cryptocompanies once again stated that the prosecutor's office had no authority to obtain the requested documents. The defendants filed a motion to dismiss the claim. The prosecutor's office, in turn, claims that Bitfinex served New Yorkers as early as the beginning of 2019, which is why the case is presumably within its competence.