The CTO of crypto-exchange Bitfinex and crypto-asset issuer Tether, Paolo Ardoino, is stepping into the spotlight of a legal battle between Bitfinex and the New York Attorney General’s (NYAG) office.
Since April 2019, the NYAG has been investigating Bitfinex and Tether over alleged market manipulation and other issues.
The NYAG’s office has alleged that Bitfinex has used Tether’s USDT reserve to cover up a $850 million loss. It also alleges that Bitfinex and Tether made false statements about Tether’s backing and used USDT tokens to manipulate cryptocurrency prices.
Ardoino, as CTO of both companies, could shed important light on the activities of both firms, particularly when it comes to Tether’s reserve. As part of the ongoing legal battle, he has now been ordered to appear in a deposition on 20 November 2020.
In preparation for the deposition, Ardoino filed a “Notice of Intention to Assert Privilege” with the New York Supreme Court on 25 October, a procedural move that allows a witness to claim the privilege of not answering certain questions. He also requested that the NYAG’s office provide detailed questions at least 14 days before the deposition.
It remains unclear whether the NYAG will comply with Ardoino’s requests. Nevertheless, the development implies that the legal battle between Bitfinex and Tether and the NYAG is heating up and it will be interesting to see what comes of the deposition.