Bitfinex and Tether Face Market Manipulation Class Action Lawsuit

By Sarah Tran   Oct 08, 2019 1 Min Read

Webp.net-resizeimage - 2019-10-08T104843.301.jpg

 

Roche Freedman, New York-based legal firm, filed a class-action lawsuit on behalf of those who own cryptocurrency against Bitfinex and Tether and others for crypto market manipulation and creating the largest bubble in history.  

 

In the class-action suit, the New York-based legal firm alleged that Bitfinex and Tether had been involved in manipulating markets and concealing illicit proceeds, as stated in the tweet by the law firm’s founding partner, Kyle Roche.   

 

The complaint filed with the United States District Court in the Southern District of New York stated that Bitfinex and Tether were involved in a sophisticated scheme to defraud investors. The complaint said that the action concerns a “part-fraud, part-pump-and-dump, and part-money laundering.”  

 

Tether’s asset backing notion debunked  

 

The document further notes that Tether claims “that the number of [USDT] tokens in circulation will always equate to the dollars in its bank account.” However, this claim was a lie, according to Roche Freedman.   

 

The law firm claimed that Tether “issued extraordinary amounts of unbacked USDT to manipulate cryptocurrency prices. Because the market believed the like that one USDT equaled one US dollar, Bitfinex and Tether had the power to, and did manipulate the market on an unprecedented scale to profit from boom-and-bust cycles they created.” 

 

 

Image via Bitcoin Magazine

About the author

Sarah Tran
Blockchain Journalist with a diverse background in the blockchain and crypto field.




Like this post:
Read More