Tether Dismisses Market Manipulations Allegations Calling Them Fake

Tether dismisses the market manipulation allegations calling them fake regarding that the USDT stablecoin is used to manipulate the Bitcoin price. In a statement issued earlier today, ifinex, the company behind Tether dismisses the allegations regarding market manipulation against saying they are ‘’reckless and false’’:

 “The allegations in the complaint are without merit or a legal basis and exhibit a fundamental lack of understanding of the market structure of cryptocurrencies. Indeed, it is reckless and false to allege that USDT tokens are issued in order to manipulate markets.”

Many of the Tether accusations regarding Tether’s alleged price manipulations are based on the academic paper ‘’is Bitcoin really un-tethered?’’ by Amin shams and M. Griffin which was the first paper published in 2018. The paper stated that Tether influenced Bitcoin and other cryptocurrency prices during the huge price boom in 2017. Tether’s general counsel Stuart Hoegner commented about the paper:

 “These now amalgamated copycat lawsuits are baseless and rely on a foundationally flawed paper by John M. Griffin and Amin Shams that lacks data and evidence to support incendiary allegations. […] Sadly, the claims are nothing more than a shameless money grab.”

Back on Monday, Roche Cyrulnik Freedman LLP Was appointed as the new lead counsel for plaintiffs in the class-action lawsuit after a few other legal companies fought for the part. The entire crypto community paid very close attention to the fight between the law companies along with the Bitcoin supporter Andreas Antonopoulos who recently expressed support for one of the legal teams. Hoegner believes that the legal teams are trying to take over the case and this way they are making huge holes in each other’s legal theories and said that it is now irrelevant who leads the counsel:

 “Whoever serves as lead interim counsel is irrelevant, as the claim rests on the defective research and methodology of a paper whose authors openly admit they do not have crucial data […] to prove actual purchases of bitcoin with Tether. ”

Karen Lerner of Kirby Mcinerney LLP that represents the plaintiffs’ Young, Kurtz, and Crystal, argued that the different kind of experience was more important in this case:

 “We are class action lawyers, and we are antitrust and commodities lawyers.”

She continued that there were not the first to file a complaint but that they work was the most original with a huge regression analysis that identified 115 specific dates when the market manipulation occurred and 256 actual transactions. The algorithm of the platform would show a lockstep pricing relationship between Bitcoin and BTC futures.