Tether and Bitfinex decry expected "meritless and mercenary" cryptocurrency market manipulation lawsuit

Tether and Bitfinex decry expected

Tether and Bitfinex decry expected "meritless and mercenary" cryptocurrency market manipulation lawsuit

The lawsuit claims that iFinex - parent company of Bitfinex - BFXNA Inc, BFXWW Inc, Tether Holdings Ltd, Tether Operations Ltd, Tether Ltd, Tether International Ltd and a number of related individuals used cryptocurrency to "defraud investors, manipulate markets, and hide illicit proceeds". According to the, Tether minted 2.8 billion USDT from 2017 to 2018 and used the token to "flood the Bitfinex exchange and purchase other cryptocurrencies".

Kyle Roche and Velvel Freedman filed a class-action lawsuit in the Southern District of NY alleging more than $1.4 trillion in damages suffered by plaintiffs David Leibowitz, Jason Leibowitz, Benjamin Leibowitz, Aaron Leibowitz, Pinchas Coldshtein and "all other similar situated".

The complaint was filed on October 6 and states that Bitfinex and Tether created and accomplished a "sophisticated scheme" involving "part-fraud, part-pump-and-dump, and part-money laundering".

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This time, a New York-based law firm, Roche Freedman LLP has slapped a lawsuit against iFinex and associated companies and individuals, accusing them of collectively using cryptocurrency to "defraud investors, manipulate markets, and hide illicit proceeds". Their liability to the putative class likely surpasses $1.4 trillion United States dollars.

Tether and Bitfinex both stated that they would actively battle lawyers if they use the paper to start a lawsuit, which they alleged to contain "baseless accusations". They're are represented by law firm Roche Freedman, known for their work in the Craig Wright case. As a result of this, the demand for cryptocurrencies got artificially inflated and caused the massive surge in cryptocurrency prices.

The lawsuit didn't take Bitfinex and Tether by surprise, as both companies have issued statements a few days ago. In separate statements (Tether's is here, Bitfinex's is here) the companies say that the lawsuit is based on research from a "bogus study" that is full of "cherry-picked and incomplete data" claiming Tether has been used to manipulate cryptocurrency markets.

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