Bitfinex and Tether sued for market manipulation

Roche Freedman, a New York law firm has sued cryptocurrency exchange Bitfinex, the parent company iFinex and stablecoin Tether for market manipulation.

 

 @RocheFreedmanLP filed a class-action lawsuit on behalf of those who own cryptocurrency against Tether and Bitfinex (and others) for manipulating the cryptocurrency market to create the largest bubble in history. 

 

Read more: Altcoin: Everything You Need To Know

 

Below is an extract from Kyle Roche which is the co-founder of the law firm.

 

“Today, Roche Freedman LP has filed a class-action lawsuit on behalf of those who own cryptocurrency against Tether and Bitfinex (and others) for manipulating the cryptocurrency market to create the biggest bubble in history.”

 In the indictment, the cryptocurrency companies are accused of cheating investors, hiding illegal returns and manipulating the cryptocurrency market.

“Partly fraud, partly pump-and-dump and partly money laundering, the plan were primarily established through two companies – Bitfinex and Tether – that mixed their corporate identity and client funds and concealed their extensive collaboration in a way that enabled them to manipulate the cryptocurrency market with unprecedented effectiveness.”

 

It is also claimed that the story that the stable coin Tether (USDT) is 100% covered with an equal amount of US dollars is a lie:

“Because the market believed the lie that one USDT was equal to one US dollar, Bitfinex and Tether had the power to manipulate the market on an unprecedented scale and take advantage of boom-and-bust cycles they created.”

The indictment even claims that Tether and Bitfinex would have caused more than $ 1.4 trillion in damage to the cryptocurrency market through market manipulation:

“A calculation of the compensation is premature at this stage, but there is no doubt that the extent of the damage caused by the suspects is unknown. Their liability to the alleged class probably exceeds $ 1.4 trillion US dollars.”

Tether and Bitfinex already saw the charge coming. Both companies had published press releases last weekend that they were aware of a leaked investigation in which they were accused of the above actions. They argue that the findings are unfounded and that they are willing to challenge the complaint.

Roche Freedman law firm recently won the lawsuit against Craig “Faketoshi” Wright, which means he has to hand over half of his bitcoins (BTC) to the legacy of Kleiman.

Both companies are already involved in a lawsuit with the New York State Attorney General Office (NYAG). In April it emerged that Bitfinex would have raised more than $ 850 million from Tether’s reserves to cover their losses.

 

Read More: Deloitte Luxembourg Staffs to Buy Lunch With Bitcoin

 

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3 thoughts on “Bitfinex and Tether sued for market manipulation”

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