, 12 tweets, 7 min read Read on Twitter
In the case that never sleeps, #Bitfinex filed its Reply to Vacate the April 24, 2019 Ex Parte Order. First: congrats to lawyers working on Cinco de Mayo. You know a defendant is pissed when its lawyers file stuff on the weekends! iapps.courts.state.ny.us/fbem/DocumentD…
1) Let's get into what the lawyers had to say: Bitfinex's lawyers' first arrow is that the OAG failed to explain how tethers qualify as a security or commodity covered under the Martin Act. Ultimately, this is a TERRIBLE argument for Bitfinex. #RegulatorsAreGoingToRegulate
2) Bitfinex lawyers have gone from "we have fully cooperated" to "the OAG has asked us for #blunderbuss document demands." Wait, I thought #Blockchain was about transparency and Bitfinex was fully cooperating. #ICalledBSBeforeAndIStandByMyAssertionOfBS
3) Bitfinex should have led with its second point: the Preliminary Injunction did not need to be issued ex parte (without notice) and that the normal standards for a PI should stand. Strong argument. It's VERY hard to get a PI. There's a reason for that. The OAG shortcut it.
4) Frankly, I don't really get Tether's third point: the asset freeze prohibits Tether from any investments of any kind. Why would a stablecoin be investing in anything? Isn't a stablecoin simply supposed to be dollar-for-dollar backed? Or wasn't that the original claim?
5) And even worse: if you don't want to be regulated as a security or commodity, should you be investing the alleged $2 Billion reserve? Where's the Audit? Where's the legitimate banks? Where's the missing money? #LotsOfQuestions - @Bitfinexed knows the answers...
6) Bad bold statement: #ThereWasNoFraud and #NoVictims. I think Bitfinex is making a bad argument that there is no dispute that Tether disclosed its reserves could consist of loans to affiliates. There's going to be a lot of proof that Bitfinex said exactly the opposite.
7) Sometimes lawyers are stuck with their clients; I get that. But here, Bitfinex knows it's dancing on the head of a pin as the world is changing around it. Stay away from distracting bold statements, and focus instead on winning arguments.
8) Great job by Bitfinex ripping apart the case law citations. Always read the cases the other party cites, and see what the other side missed when they simply cut and paste a string cite. #TheBestWeaponIsUsuallyYourOpponentsOwnWords
9) Here, #SteptoeJohnson and #MorganLewisBockius are earning their $750+ an hour by knocking back bad legal arguments. To be clear: I think that's their best argument #AtTheMoment; long term, they've got problems defending Bitfinex, because Bitfinex did shady shit.
10) Focusing on the #Shady: I love the argument that Tether has a keen interest in ensuring that Bitfinex can operate as normal. Ummmm NOOOOOOO! Tether is a stablecoin, not an investment entity. You guys are shooting your future arguments in the foot.
11) Keeping that theme going: the argument that the cryptocurrency market was rallying, and that the rally was halted by this case, is #Ridiculous. Regulators can and should expose fraud, at any time. #CryptoNeedsRules #WorkWithCompaniesWorkingWithRegulators - @coinbase @Gemini
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