A New York based legal firm recently filed a lawsuit against Tether (USDT) and the Bitfinex exchange which issues the stablecoin, accusing them both of cryptocurrency market manipulation.
Roche Freedman is the name of the legal firm which recently filed a class action lawsuit alleging that the firm behind the stablecoin and the affiliated exchange have been defrauding investors, manipulating markets and concealing illicit proceeds. The suit is in the cryptocurrency news today, after the firm’s founding partner Kyle Roche took everything to Twitter yesterday.
As we can see from the tweet, Roche explained the lawsuit against Tether and Bitfinex and accused them of creating the “largest bubble in history.” Filed on October 6, this complaint document states that both Bitfinex and Tether primarily accomplished a “sophisticated scheme” involving “part-fraud, part pump and dump, and part money laundering.”
The lawsuit against Roche Frieedman is in the Tether coin news, showing that Roche Freedman argues that Tether’s claim of backing the number of its Tether tokens (USDT) by equal amounts of US dollars was a lie. Instead, the company said that Tether “issued extraordinary amounts of unbacked USDT to manipulate cryptocurrency prices.” The document reads:
“Because the market believed the lie that one USDT equaled one U.S. dollar, Bitfinex and Tether had the power to, and did, manipulate the market on an unprecedented scale to profit from boom-and-bust cycles they created.”
The lawsuit against Tether and Bitfinex is in the Tether crypto news and comes two days after both Tether and Bitfinex published statements confirming that they had become aware of an unreleased paper which was “falsely positing that Tether issuances are responsible for manipulating the cryptocurrency market.”
Alleging that their paper contained “baseless accusations,” the lawsuit against Tether and Bitfinex said that they might vigorously defend themselves if lawyers use the source to launch a new lawsuit.
Meanwhile, the price of Tether is not an issue because as a stablecoin, it is pegged to the US dollar. Currently, USDT is at $1.01 and its daily volume is at $22.13 billion which is a solid indicator that a new increase (and influx of money) might be coming on the market.
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