How US Investors Are Buying Bitfinex’s Blocked LEO Cryptocurrency

U.S. investors have been able to purchase Bitfinex’s LEO exchange tokens, if only indirectly.

Seattle-based Arrington XRP Capital and Los Angeles-based Arca both said they invested in LEO tokens, despite Bitfinex’s stated policy of refusing to sell them to U.S. residents or entities.

Both investment management firms told CoinDesk that, rather than purchasing the tokens from Bitfinex, they acquired them, legally, from third parties.

The distinction is important because, in an ongoing court battle with the New York Attorney General (NYAG), Bitfinex maintains that it banned U.S. individuals from its platform in August 2017 and U.S. corporates a year later.

In arguing that it has jurisdiction in the case, the NYAG claims the exchange did business with New York entities as recently as early 2019.

‘Brick wall’

Michael Arrington, a partner at Arrington XRP Capital, told CoinDesk that although his firm is registered in the Cayman Islands, he is an American. As such,…