Bitfinex and Tether apply to dismiss market manipulation lawsuit

The defendants insist that the lawsuit brought against them is based on assumptions that have nothing to do with reality.

Tether and its affiliate cryptocurrency exchange Bitfinex have filed a motion to dismiss a market manipulation suit, the defendants say that no evidence of manipulation has been provided yet.
The companies in question received the lawsuit in November last year. A group of traders accuses them of flooding the market with unsecured Tether tokens. The prosecution insists that Bitfinex received USDT worth “up to $ 3 billion,” but did not transfer the equivalent amount to the issuer’s account. Bitfinex allegedly used the obtained assets to artificially inflate the prices of the cryptocurrency, which it subsequently sold, and used the acquired dollars to replenish Tether’s reserves.
In June 2020, the plaintiffs expanded accusation: the cryptocurrency exchanges Bittrex and Poloniex were added as new defendants. Traders believe these companies were aware of Bitfinex and Tether’s manipulation. Moreover, they deliberately helped them implement a fraudulent scheme, allowing them to place orders for the purchase of cryptocurrency on their platforms.
Bitfinex believes that the accusation is based on two assumptions: first, the exchange owns accounts that are allegedly involved in manipulative trading; second, the exchange knew that these accounts were involved in manipulation. The prosecution was never able to prove if these assumptions are true.
Recall that now another lawsuit against Bitfinex is underway. The New York State Attorney General accuses the exchange of concealing $ 850 million in losses using Tether funds. The prosecutor’s office also insists that the borrowing process was conducted improperly and did not meet the requirements for such transactions.

Be the first to comment

Leave a Reply

Your email address will not be published.


*