CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$23,139.00
  • ethereum
    ETH$1,589.71
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » Bitfinex Wants Dismissal of ‘Unfounded’ $1.4 Trillion Bitcoin Market Manipulation Lawsuit

    Bitfinex Wants Dismissal of ‘Unfounded’ $1.4 Trillion Bitcoin Market Manipulation Lawsuit

    Author: Himadri Saha

    Last Updated Sep 6, 2020 @ 14:21

    Stablecoin printing firm Tether and cryptocurrency exchange Bitfinex have rejected the Bitcoin market manipulation lawsuit against them as baseless. In a motion filed on Thursday, they have called for it’s outright dismissal.

    Bitfinex and sister firm Tether moved to dismiss a Bitcoin manipulation lawsuit filed against them in October last year. The crypto companies said that the allegations are baseless.

    Bitfinex And Tether Call For Dismissal Of ‘Preposterous’ Lawsuit

    In October 2019, a group of bitcoin and cryptocurrency traders David Leibowitz, Benjamin Leibowitz, Jason Leibowitz, Aaron Leibowitz, and Pinchas Goldshtein filed a class-action lawsuit against Bitfinex and Tether claiming that the crypto exchange and the USDT printing firm manipulated markets resulting in damages to the tune of $1.4 trillion. On Thursday, Tether and Bitfinex parent firm iFinex filed a motion for dismissal of the lawsuit.

    Earlier in June this year, Bitfinex General Counsel Stuart Hoegner, had labeled the lawsuit as an “unproven conspiracy theory” in a company announcement. But the two cryptocurrency companies decided to strengthen their stance in a supporting memorandum. Extracts from the statement read:

    Plaintiffs attempt to patch this gaping hole in the CAC with unsupported conclusions and rank speculation, rather than allegations of fact.

    The Racketeer Influenced and Corrupt Organizations Act (“RICO”) claims fail because Plaintiffs do not plead facts demonstrating a RICO conspiracy, or that they suffered an injury proximately caused by such a conspiracy. All of the claims should be dismissed.

    Accounts Used For Crypto Market Manipulation Not Owned by Bitfinex

    The plaintiffs claimed that from 2015 to 2018, a Bitfinex ‘account’ owner wired around $3 billion USDT to ‘accounts’. These accounts exist on Bittrex and Poloniex (also the defendants in the case). As per the allegation, USDT transfers stopped temporarily during a ten-day period in January 2018.

    Bitfinex slammed these accusations in the memorandum. It stated that the plaintiff’s case entirely depends on the ‘assumption’ that these ‘accounts’ belong to the exchange. In its defense, Bitfinex added:

    ADVERTISEMENT

    Plaintiffs do not allege any fact—i.e., no document, no witness, no email, no other communication—suggesting that the Accounts are owned or controlled by Bitfinex. Instead, Plaintiffs ask the Court to infer that the accounts are owned or controlled by Bitfinex based on innocuous facts that do not demonstrate such ownership or control.

    The iFinex owned cryptocurrency exchange went on to say that it has ‘thousands of customers all over the world’. Therefore, transfers from Bitfinex to the mentioned ‘accounts’ don’t imply anything about the ownership of these accounts.

    Even if the transfers are as large as $3 billion, it doesn’t mean that a single person or entity owns the accounts.

    Lawsuit Fails To Prove That The Plaintiffs ‘Actually’ Suffered Damages

    Bitfinex and Tether have negated the possibility of the complainants incurring serious losses. The crypto companies said that it is ‘rare’ that the plaintiff ‘traded directly with a defendant’. According to the statement:

    she will have to plead enough facts to make plausible the inference that the prices of her trades with a third party have been substantially influenced by a defendant’s trades with a third (or fourth or fifth . . . )

    The accuser as per Bitfinex and Tether has not brought to light even a single transaction that can prove that its financial impact on the complainant was harmful.

    The allegations don’t add up on any grounds, and hence, should be outrightly dismissed, Bitfinex said.

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • bitcoin_cover
      Bitcoin Dominance at 4-Month High as Total Market Cap Gains $17 Billion (Market Watch)
    • fidelity
      Fidelity Explains How Bitcoin Could Grow Into a Trillion-Dollar Market
    • soar_cover
      Bitcoin Soared To $13,200 As $17 Billion Added To The Market Cap (Market Watch)
    Tags: Bitcoin Bitfinex Tether (USDT)
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Himadri Saha
    More posts by this author

    Himadri’s love affair with cryptocurrencies began in 2016. Since then he has been a vocal proponent of crypto as a robust investment alternative to traditional options. Himadri believes that art and code can redefine the way we look at life. Contact Himadri: LinkedIn

  • bitcoin
    BTC$23,139.00
  • ethereum
    ETH$1,589.71
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    From Google and Microsoft to Binance: Interview with Head of Product Mayur Kamat

    From Google and Microsoft to Binance: Interview with Head of Product Mayur Kamat

    13 Biggest Crypto Scandals and Controversial Stories of 2022

    13 Biggest Crypto Scandals and Controversial Stories of 2022

    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!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    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!