BitFinex Demands Dismissal Of Market Manipulation Lawsuit

BitFinex demands dismissal of the “unfounded” market manipulation lawsuit as Tether also rejected the Bitcoin market manipulation lawsuit and said that the entire thing is baseless. In a motion filed on Thursday, they even called for a dismissal which we are reading more about in out Tether cryptocurrency news.

Bitfinex demands a dismissal along with its sister company Tether, for the market manipulation lawsuit that was filed against them in October. The crypto companies said that the allegations are baseless and unfounded. In 2019, a group of crypto traders, Benjamin Leibowitz, David Leibowitz, Aaron Leibowitz, Jason Leibowitz, and Pinchas Goldshtein, filed a lawsuit against Tether and Bitfinex claiming that the exchange and the USDT printing caused a market manipulation which resulted in damages of $1.4 trillion. Tether and iFinex filed a motion to dismiss the lawsuit on Thursday.

Earlier in June, the Bitfinex General Counsel Stuart Hoegner labeled the lawsuit as “unproven conspiracy theory” but both of the companies decided to enhance their stance in the supporting memorandum as an excerpt from the statement reads:

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

The plaintiffs claimed that from 2015 to 2018, a bitfinex account owner wired about $3 billion coins to accounts that existed on Bittrex and Poloniex. USDT transfer then stopped right away during a ten-day period in 2018, January. Bitfinex slammed the accusations and stated that the plaintiff’s case is dependent on the assumption that the accounts belong to the exchange:

“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 owner crypto exchange also said that thousands of customers are supporting them around the world so transfers from Bitfinex to the said accounts don’t imply anything about the ownership of the accounts. Both Tether and Bitfinex negated the possibility of the complaints incurring huge losses and 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 . . . ).”