Bitfinex Disagrees With The ‘Meritless And Mercenary’ Report

Bitfinex disagrees with the allegations in the ‘Meritless and Mercenary’ reports where it says that the company will be prosecuted by an unknown party along with Tether. As per the blockchain latest news today, the Hong Kong-based exchange has been involved in many controversies and got wind of a damning report and is looking to avoid any negative press ahead of its publishing.

According to the blog post issued on Saturday, we can clearly see that Bitfinex disagrees with the report:

 “Bitfinex is aware of an unpublished and non-peer reviewed paper falsely positing that Tether issuances are responsible for manipulating the cryptocurrency market. Bitfinex vigorously disputes the findings and conclusions claimed by that source, which rely on flawed assumptions, incomplete and cherry-picked data, and faulty methodology.”

Bitifnex has not disclosed the source of the claim but a number of studies show that the newly minted-tethers tend to boost the Bitcoin price up. The cryptocurrency exchange is still involved in many legal battles with the New York Attorney General and has only a week to produce documents proving its innocence. The company noted:

 “We fully expect mercenary lawyers to use this deeply flawed paper to solicit plaintiffs for an opportunistic lawsuit… In advance of any filing, we want to make clear our position that any claims based on these insinuations are meritless, reckless and a shameless attempt at a money grab.”

The Tether token which claims to be the mirror to the US dollar has got many of the users wondering its peg to the USD considering how significantly the dollar has declined over the years. The company that issues the USDT tokens, Tether limited, is a separate entity from the Bitfinex exchange but the speculation runs rife that both of the companies are colluding. Since 2017, Tether’s market cap has increased dramatically to $4.1 billion which makes it the fourth cryptocurrency by market cap. Bitfinex rounded the statements by re-affirming that all of the USDT tokens are fully backed as we can read in the crypto news today:

 “All Tether tokens are fully backed by reserves and are issued and traded on Bitfinex pursuant to market demand, and not for the purpose of controlling the pricing of crypto assets.”