The general attorney office of the State of New York accused Bitfinex of concealing the fact of losing $850 million of company's and customers' funds. After this information was published, approximately $350 million in bitcoins and Ethereum was withdrawn from Bitfinex's cold wallets.

About 58,008 BTC (~$307 million) were withdrawn from Bitfinex's bitcoin cold wallet on 25 and 26 of April. About 873,005 ETH (~$136 million) was withdrawn from Bitfinex's ether cold wallet during the period from 25 till 28 of April, according to TokenAnalyst.

It's not disclosed whether the funds were transferred to the wallets owned by Bitfinex or whether the withdrawals were triggered by the statement of New York Attorney General’s office.

On 25 April, the New York Attorney General’s office published a press release signed by Letitia James, according to which a court ordered iFinex Inc, which operates Bitfinex and Tether, to cease violating New York law and defrauding New York residents.

As James explained, Attorney General's investigation revealed that iFinex “engaged in a cover-up to hide the apparent loss of $850 million of co-mingled client and corporate funds.” New York authorities suspect that Bitfinex sent $850 million of customer and corporate funds to Crypto Capital Corp., a payment processor that also holds funds of Canada-based QuadrigaCX, and used Tether's reserves to hide the shortfall without disclosing this decision to customers.

Furthermore, Attorney General's office accused Bitfinex of providing trading services to New York-based individual investors, although this is not allowed to crypto trading platforms which do not have Bitlicense.

The Supreme Court of the State of New York ordered that iFinex, Bitfinex and Tether, their directors, officers, principles, agents, employees, contractors, assignees and all other persons, acting or having acted in aid or furtherance of the same are to cease accessing, loaning, extending credit, or making any other claim to the US dollar reserves held by Tether.