New lawsuit against Tether and Bitfinex: “Our fight is the community’s fight.”

  • A new lawsuit was filed in the state of Washington, United States, against Tether and Bitfinex for the alleged market manipulation.
  • The lawsuit will be another in the succession of lawsuits that Tether and Bitfinex have already received.

A new legal episode for Tether and Bitfinex has started. They have received a lawsuit in the state of Washington. The accusations are similar to those made by another lawsuit filed in early October. As Tether and Bitfinex have stated, they will follow the case to its ultimate consequences and will not seek a settlement.

The lawsuits against Tether and Bitfinex

As CNF reported, in October, the cryptocurrency exchange platform, Bitfinex, and the stablecoin emittent, Tether, have already received a lawsuit after a study claimed to have verified that these two entities manipulated the crypto market. That first lawsuit was introduced in the Southern District of New York, by Roche Freedman LLP on behalf of several investors.

According to a press release issued recently by Tether and Bitfinex, the new lawsuit was introduced in the Western District of Washington. In addition, the defendants have stated that the most recent lawsuit is a copy of the previous one and that this is only an attempt for

mercenary lawyers continue to try to use Tether to obtain a payday. To be clear, there will be no nuisance settlements or settlements of any kind reached.

The defendants said they are willing to take legal action against the entities behind the charges. According to Tether and Bitfinex, this type of legal action is only detrimental to the progress that digital assets have made and, especially, against the role that Tether has played in the ecosystem.

Our fight is the community’s fight.

The legal actions would have been foreseen by Tether and Bitfinex, according to the press release issued after the publication of the mentioned study. There, both companies are accused of being false, malicious and irresponsible.

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Study against Tether: was there market manipulation?

It is suspected that the study that triggered the series of demands made on Tether and Bitfinex, is the one carried out by the firm Token Analyst Study. The conclusions of this study stated that Tether have had a significant role in the increase in Bitcoin‘s price in 2019.

In addition, the study showed the correlation between the increase in the price of Bitcoin on the days that new USDT tokens were issued. Arguments that Tether quickly denied, accusing Token Analyst of relying on false assumptions, incomplete data and a wrong methodology.

However, the history of Tether and Bitfinex is full of legal disputes. These two lawsuits only increase the history that this year alone has been growing. The crypto exchange and Tether also have an open legal proceeding by the New York Attorney General’s Office (NYAG) for their business practices.

Tether’s future could be decided by any of these institutions. However, the outcome of the proceedings remains uncertain for the time being, so that it will be necessary to wait for future developments.

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About Author

Reynaldo Marquez has closely followed the growth of Bitcoin and blockchain technology since 2016. He has since worked as a columnist on crypto coins covering advances, falls and rises in the market, bifurcations and developments. He believes that crypto coins and blockchain technology will have a great positive impact on people's lives.

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