Lawsuit against Tether and Bitfinex: accusations of manipulation of the price of Bitcoin
Date: 2024-07-17 Author: Gabriel Deangelo Categories: IN WORLD
In the Southern District of New York court, Tether and Bitfinex face charges of carrying out a complex scheme to manipulate the prices of cryptocurrencies, including Bitcoin. The plaintiffs allege that the companies made large purchases to create the illusion of high demand and cause asset prices to soar.
The lawsuit alleges violations of the Commodity Exchange Act (CEA) and the Sherman Antitrust Act. The plaintiffs also allege that Tether and Bitfinex issued unbacked USDT, using it to make manipulative purchases of cryptocurrencies, misleading the market about actual demand.
Refutation and losses for investors
The plaintiff alleges that Tether transferred billions of unbacked USDT into its crypto wallets, resulting in significant losses for cryptocurrency buyers. These actions have had a significant impact on the market and its participants.
This is the third lawsuit filed in 2019 related to allegations of cryptocurrency price manipulation. The trial process was repeatedly slowed by various delays, including changes to the complaint and the removal of the plaintiffs' legal counsel.
Tether and Bitfinex dispute the allegations and insist the lawsuit has no merit, calling it a desperate attempt to revive a case they say lacks substance.
