Bitfinex Must Face N.Y. Suit Over $800 Million in Lost Funds (2)

The cryptocurrency exchange Bitfinex must face claims by New York state that it hid the loss of commingled client and corporate funds, a state appeals court ruled Thursday.

Companies connected to Bitfinex are accused by New York Attorney General Letitia James of hiding the loss of more than $800 million in client and corporate funds.

The companies have said the funds were deposited with a Panamanian company called Crypto Capital Corp. and then seized by government authorities in various countries. They have said they’re working to recover the funds.

Companies tied to Bitfinex also operate the stablecoin Tether, which serves ...