Tether and Bitfinex Dragged In Amended Class Action Lawsuit

by

As a seasoned researcher with extensive experience in the crypto industry, I have closely followed the ongoing legal battle between Tether and Bitfinex. The latest development in this case, which includes amended class action lawsuits accusing the firms of market manipulation and violation of antitrust laws, is particularly concerning.

Tether, the stablecoin issuer, and Bitfinex, the cryptocurrency exchange, have become involved in a revised class-action lawsuit. The companies are presently under accusation for potential market manipulation practices.

Recent Tether And Bitfinex Case Comes With 3 Cause Actions

As a crypto investor, I’ve been keeping an eye on some troubling developments regarding Tether and Bitfinex. In a court filing with the US District Court Southern District of New York, allegations have surfaced accusing these companies of market manipulation and antitrust law violations. To clarify, they are being accused of breaking the Commodities Exchange Act (CEA) through market manipulation, monopolistic practices, and collusion to restrict trade.

Matthew Script, Benjamin Leibowitz, Jason Leibowitz, Aaron Leibowitz, and Pinchas Goldshtein filed a revised complaint in the ongoing class action lawsuit against them.

According to the filing, Tether and its associated crypto exchange are accused of devising a complex plan to artificially boost the cost of cryptocurrency commodities, which is a category that encompasses Bitcoin. The allegation against Tether involves it releasing large quantities of its USD-pegged stablecoin, USDT, into the market without being fully backed by the stated amount of dollars.

Through this action, it gave the appearance of heightened interest in cryptocurrencies within the market. Consequently, it enabled trading of these digital currencies using borrowed funds on credit. In turn, crypto prices experienced an upward trend due to this perceived boost in demand. Two separate lawsuits related to this matter were overseen by U.S. District Judge Katherine Polk Failla – the initial complaint was filed in 2019, followed by an amended lawsuit the following year.

The initial complaint listed eight reasons for taking legal action. In contrast, the revised version now includes twelve reasons. This underscores the fact that the latest edition represents a more streamlined version.

Original Counsel Removed in Tether Suit

Based on my extensive experience in following legal proceedings, I must admit that this particular lawsuit has faced some significant setbacks throughout its journey. One major hurdle was the departure of Roche Freedman, a renowned crypto law firm, from representing the plaintiffs. Their expertise and resources would have undoubtedly strengthened the case significantly.

As a researcher, I’ve come across some troubling information regarding Kyle Roche, the founder of a well-known cryptocurrency law firm. Two years ago, unsavory video recordings surfaced online, depicting Roche admitting to filing frivolous lawsuits on behalf of his clients to manipulate case outcomes. These revelations have raised serious concerns about Roche’s authenticity as a legal professional upholding the law.

In the ongoing litigation, it is alleged that there exist chat and deposition records from company representatives, which reportedly admit to engaging in manipulative practices.

Significantly, a representative from Tether has stated that the allegations in the revised lawsuit lack validity.

Read More

2024-07-16 01:40