Bitfinex Granted 2 of 3 Subpoenas in Hunt for Missing Millions

Bitfinex Granted 2 of 3 Subpoenas in Hunt for Missing Millions


Cryptocurrency exchange Bitfinex has suffered a minor blow in its hunt for millions of dollars that went missing two years ago.

Bitfinex’s parent firm, iFinex Inc., is  $850 million in user funds seized by authorities in four different countries after bank accounts held by its payment processor, Crypto Capital,  in August 2018.

iFinex applied for subpoenas in Colorado, Arizona and Georgia in April, but the U.S. District Court of Georgia recently denied its request due to filing errors.

A federal judge in April and the third subpoena filing in Colorado, for a different bank,  last month.

According to  filed June 8 in Georgia, Magistrate Judge Alan J. Baverman said the bank iFinex is trying to subpoena merged with another financial institution and is now based in North Carolina. As such, the Georgia court does not hold jurisdiction over the exchange’s petition.

Moreover, for reasons unknown, iFinex named Citibank in its petition rather than the intended SunTrust Bank, which Branch Banking and Trust Company (BB&T) to form Truist Bank in December 2019.

“[It] appears that Applicant … has filed its petition in the wrong district. Even if Applicant had shown that SunTrust Bank still exists and is headquartered or otherwise ‘resides’ or ‘is found’ in this district, the petition would still be due to be denied as the proposed subpoena is addressed not to SunTrust Bank (or Truist Bank) but instead to Citibank,” Judge Baverman wrote.

The missing funds were first made public by the New York Attorney General’s office that Bitfinex lost the $850 million and later used a secret loan from affiliated stablecoin issuer Tether to secretly cover the shortfall.

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