BitFinex Intends To Dismiss Tether-Related Class Action Lawsuit

Bitfinex intends to dismiss the tether-related class action lawsuit as per the latest announcements calling its allegations ‘’ridiculous.’’ As per the lawsuit filed on October 6, it is explained that Bitfinex and Tether operated a ‘’sophisticated’’ scheme that aimed to defraud investors and to also manipulate the market. Let’s find out more about the crypto news that we have today.

As per the Bitfinex announcements, the lawsuit asserted that Tether lied when the company claimed to ever issue USDT that was covered fully by the money in its bank account. The supposed perception that each of the USDT generated was an additional dollar invested in the crypto market increased the confidence, is the main theory behind the lawsuit. Tether is also accused to have issued an ‘’extraordinary amount’’ of unbacked coins only to manipulate the crypto prices and therefore it ended up pumping the surge of Tether into the Bitfinex exchange.

The prices also increased and the trading spiked. According to the lawsuit, the manipulation resulted in the ‘’largest bubble in human history’’ and more than $450 billion in value subsequently vanished in less than 30 days. Other defendants such as Digifinex which is the majority owner of Bitfinex and Tether, Crypto Capital Corp and Global Trade Solutions AG. Bitfinex intends to list three key arguments that support the dismissal of the complaint.

The arguments include the complaint relies mostly on an unpublished academic paper with a lot of methodological flaws by John Griffin and Amin Shams which was amended to ‘’walk back’’ and its support for the complaint. Bitfinex claims that there are also a lot of factors that influence Bitcoin’s run in 2017. Finally, the exchange argues that it would also be impossible to manipulate the market ‘’ more than seven hundred times the size of total tether USDT issuance in circulation’’ saying that a rational person would agree with the statement.

Also as previously reported, Tether was originally developed to function on the Omni Layer of the Bitcoin protocol. Tether, however, operates on the Omni protocol and gives the assets the stability generally associated with BTC. Since it was launched in 2014, Tether added multiple transport protocols. The stablecoin is also available on the Ethereum blockchain and this makes it operational in all of the smart contracts and apps on the network.