On October 6, a class-action lawsuit was filed against Tether from Roche Freedman LLP, which claims that the actions of the aforementioned stablecoin issuer caused $1.4 trillion worth of damage. VanEck Director Gabor Gurbacs reacted to this event on his twitter.
I am tired of hoodwink academics, hype-media and uninformed lawyers discrediting the hard work & structural innovation that @Tether_to and @bitfinex built. They built services for #bitcoin & #crypto companies that others failed to provide. Stop the witch-hunt; protect innovation!— Gabor Gurbacs (@gaborgurbacs) October 7, 2019
The statement in defence of Tether turned out to be quite strong and unexpected for many members of the crypto community. With the strongest commentators, Gabor Gurbacs even entered into a discussion.
Thoughts on why Tether is structural innovation:— Gabor Gurbacs (@gaborgurbacs) October 7, 2019
> Upgrades USD transfer speed & access
> Crypto & crypto exchange native
> Deployed on multiple blockchains
> Compatible with banks & backed by banks
> First & largest stablecoin with billions in assets
> Free market adopted it
Where it all comes from
Recall that two days ago, Tether and Bitfinex published announcements in which they declared their readiness to challenge any false charges, the purpose of which is only extortion, and not justice or the search for the truth. The next day, a lawsuit in the amount of $1.4T was filed against the company, accusing Tether of market manipulation.
Nevertheless, the USDT issue continues successfully, which is confirmed by the tweets of cryptocurrency transactions tracking bot Whale Alert.
Look from a side
eToro senior market analyst Mati Greenspan also expressed his opinion regarding the validity of the charges against Tether. He said the following:
“I'm not saying if these allegations are true or false, that's for the court to decide. What I will say is that in major financial institutions across the globe, the process of creating unbacked currency for the purpose of purchasing financial assets and propping-up market prices is simply known as common practice.”
“So if anyone is worried that the price of bitcoin has been 'pumped' please take a moment to think about the effects of a full decade of ample quantitative easing and other liquidity injections multiplied by the fractional reserve system and how this might've affected the value of stocks and bonds.”
As we can see now, this story is far from over, let's watch the development of it together.