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Class Action Lawsuit Filed Against Tether and Bitfinex, Alleging $1.4 Trln in Damages

  • Alex Dovbnya
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    Tether and Bitfinex face a class action lawsuit over alleged market manipulations

Class Action Lawsuit Filed Against Tether and Bitfinex, Alleging $1.4 Trln in Damages
Cover image via news.u.today

Tether and affiliate exchange Bitfinex have been hit with a class action lawsuit that was filed in the United States District Court for the Southern District of New York. The lawsuit is based on the 2018 research paper that alleges that the Bitcoin's historic bull run was propelled by Tether's printing spree.          

From 2017 through 2018, Tether printed 2.8 billion USDT and used it to flood the Bitfinex exchange and purchase other cryptocurrencies. This artificially inflated demand for cryptocurrencies and caused prices to spike 

While the plaintiffs claim that it would be "premature" to calculate damage inflicted by Tether and Bitfinex, they have estimated that the defendant's liability likely surpasses a whopping $1.4 trln.       

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On Oct. 5, Bitfinex addressed the upcoming lawsuit, calling it "meritless." They further explained that the aforementioned paper was deeply flawed, and its aim might have been the soliciting of "an opportunistic lawsuit."         

Bitfinex and its affiliates have never used Tether tokens or issuances to manipulate the cryptocurrency market or token pricing. 

Bitfinex CTO Paolo Ardoino has already shared his take on the freshly filed lawsuit, calling this "an attack against the entire crypto industry." 

What are your thoughts on the Tether/Bitfinex controversy? Feel free to leave your comment!           

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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Ex-Congressman Says Fed Should Not Play With Own Cryptocurrency

  •  Denis Sinyavskiy
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    Former US Congressman Ron Paul shares his thoughts on the possible creation of Fed’s own cryptocurrency

Ex-Congressman Says Fed Should Not Play With Own Cryptocurrency
Cover image via www.123rf.com

Former US Congressman Ron Paul spoke on Fox Business and said that the Fed should not think about creating its own cryptocurrency.

Fed’s Crypto: To Be or Not To Be?

Rumors have been circulating for the past few months about the Fed possibly creating own cryptocurrency. It is expected that a digital coin would become a competitor to its counterparts on the market, and may even replace fiat money. President Patrick Harker, President of the Federal Reserve Bank of Philadelphia, commented on such rumors at a recent conference:

“It is inevitable. I think it is better for us to start getting our hands around it.”

However, there has not been no official follow-up by the Fed towards a crypto exchange. While proponents of this idea believe such innovation is necessary, it is expected that the exchange could stop the current delays involving US bank transfers.

What do the opponents think about the Fed's own cryptocurrency?

The idea of ​​creating the Fed's cryptocurrency has its opponents. This includes Ron Paul, who believes that the Fed is in a better position to stay away from digital coins and allow the private blockchain sector and payment platforms to resolve this discussion in real-time. What the Fed plans to do next is unclear, but the central bank may still enter the game.

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About the author

Starting with a simple interest in cryptocurrency, over the past two years, Denis has worked in a cryptocurrency fund and become an author with an analytical bias. His engineering degree helps with the analysis of the technical part of the cryptocurrency market. As a fan of cryptocurrency, Denis believes that the blockchain technology is the future.

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