Letitia James – The New York State Attorney General (NYAG) – has reportedly demanded the Hong Kong-based crypto exchange Bitfinex to public all documents, regarding the hundred-million-dollar funds borrowed from stablecoin issuer Tether.

Specifically, the legal paper released by the NYAG – dubbed “memorandum of law” – accused Tether and Bitfinex of working together to cover up the $850 million fraud of Bitnex, as well as provide false information to their customers and investors, and has requested Bitfinex to be transparent regarding its money transaction-related activities documents.

“While that and other discrepancies do not change the core issues in this case […] they only heighten the OAG’s [Office of the Attorney General’s] need to obtain documents and information in a timely, organized fashion so that the OAG may understand what has taken place, and what continues to take place, at these companies.” The legal document further stated.

The document further revealed that the government officials have given out an order to maintain the current situation, and to also keep the Respondents from “further dissipating the cash reserves that supposedly back the tether virtual currency, pending completion of the OAG’s investigation”

NYAG also clarified that the document does not prohibit Bitfinex and Tether from carrying on their normal operations, but solely to prevent Tether from lending Bitfinex any additional fund.

As The Crypto Sight reported, The New York Attorney General sued Bitfinex for covering an $850 million fraud with the money lent to by Tether. Both companies (Bitfinex and Tether) have later responded via a blog post, stating the accusation was “riddled with  false assertions.”