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.
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!