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

Libra Coin News
Mon, 10/07/2019 - 14:04
Alex Dovbnya
Tether and Bitfinex face a class action lawsuit over alleged market manipulations
Cover image via 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.       

Tether Whales Control 80 Percent of USDT Supply: Coin Metrics Report

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!           

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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