CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • Fund
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$49,687.00
  • ethereum
    ETH$1,650.93
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    Home » Crypto News » Bitfinex Dismisses Tether’s Bitcoin Price Manipulation Lawsuit: Baseless Conspiracy Theory

    Bitfinex Dismisses Tether’s Bitcoin Price Manipulation Lawsuit: Baseless Conspiracy Theory

    Author: Greg Thomson

    Last Updated Jun 4, 2020 @ 20:45

    Bitfinex has responded to the latest amendments in the ongoing class-action lawsuit leveled against Bitfinex and Tether, calling the entire case, “baseless.”

    Bitfinex/Tether Denounce “Baseless” Lawsuit

    General Counsel for Bitfinex, Stuart Hoegner, labeled the lawsuit an “unproven conspiracy theory.” He said in an official company announcement on June 4:

    “The plaintiffs’ allegations remain untethered to either the facts or the law. They conflate perceived correlation with causation in an effort to prop up theories that are untrue and unsupportable.”

    Bitfinex and Tether have been accused by five US citizens of manipulating the price of Bitcoin between 2016 and 2017. The plaintiffs allege that the shared executive management of Tether and Bitfinex colluded to print billions of unbacked USDT, which it then used to purchase – and inflate – the price of Bitcoin.

    Poloniex, Bittrex Added to List of Defendants

    The latest amendments to the court filing made on June 4 added two US cryptocurrency exchanges to the list of defendants – Bittrex and Poloniex. The amended filing refers to the role of the two named exchanges in the affair, stating:

    “With the willing assistance of Bittrex, Inc. (“Bittrex”) and Poloniex LLC (“Poloniex”), two other crypto exchanges, Bitfinex and Tether used fraudulently issued USDT to make strategically timed, massive purchases of crypto commodities just when the price of those commodities was falling.”

    The Bitfinex announcement states that the only consistency present in the plaintiff’s allegations is a lack of evidence. Bitfinex claims the plaintiffs – named as Matthew Script, Benjamin Leibowitz, Jason Leibowitz, Aaron Leibowitz, and Pinchas Goldshtein – have confused causation and correlation.

    Hoegner said, “If you see a group of people opening umbrellas, that doesn’t mean that they caused it to rain.”

    tether_history_scandals
    The history of Tether’s scandals

    Tether Backing

    The announcement maintains that each issuance of the USDT stablecoin is fully backed on a 1:1 ratio with the US dollar, and cites publicly available evidence to counter the theory that USDT was ever used to manipulate Bitcoin.

    However, as reported by Bloomberg in 2019, Tether once admitted that only 74% of its issuances were actually backed by cash or short-term securities. And contrary evidence, also publicly available, can be found, which suggests Tether was used to inflate the price of Bitcoin. The matter remains inconclusive.

    “Tether is proud to play a critical role in the digital token ecosystem. This meritless lawsuit is an insult to the ingenuity of Tether’s customers, as well as the success and innovation of the industry and all who play a role in it,” the announcement states.

    At the time of writing, Tether (USDT) is the third-largest digital currency by market cap, with over $9.2 billion tokens in circulation, third only to Bitcoin and Ethereum.

    Enjoy reading? Please share:
    Facebook Twitter LinkedIn Telegram
    SPECIAL OFFER (Sponsored)
    Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

    PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

    You Might Also Like:

    • filb2
      $14,000 By End of 2020 a Reasonable Target for Bitcoin's Price: Filb Filb in Exclusive Trader's Digest
    • justice_scales
      Bitfinex Wants Dismissal of 'Unfounded' $1.4 Trillion Bitcoin Market Manipulation Lawsuit
    • bitcoin bullish
      Bitcoin Difficulty Ribbon Could Indicate Imminent Price Increase
    Read more on: Bitcoin Bitfinex Tether (USDT)

    About The Author

    Greg Thomson View more posts by this author

    Greg is a journalist from Glasgow, Scotland who covers the cryptocurrency and blockchain beat. He has contributed to some of the foremost publications in the industry and joined CryptoPotato in 2020. Contact Greg

  • bitcoin
    BTC$49,687.00
  • ethereum
    ETH$1,650.93
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    ADVERTISEMENT
    pionexb
    2local
    Bitcoin Editorials
    The Laser Eyes Meme: Not a Coincidence That This Marked a Local Top for Bitcoin (Opinion)

    The Laser Eyes Meme: Not a Coincidence That This Marked a Local Top for Bitcoin (Opinion)

    What Are the Risks of Governance Tokens? (Opinion)

    What Are the Risks of Governance Tokens? (Opinion)

    The Bitcoin Bubble Effect: Yes, We Are in a Very Early Stage (Opinion)

    The Bitcoin Bubble Effect: Yes, We Are in a Very Early Stage (Opinion)

    Will Bitcoin Price Rally Continue In 2021? 8 Key Considerations

    Will Bitcoin Price Rally Continue In 2021? 8 Key Considerations

    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    Ethereum 2.0 Staking on Exchange vs. Creating Your Node: What You Need to Know

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    About
    Advertise on CryptoPotato
    About Us | Contact Us

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!