Manipulation Case Against Bitfinex Withdrawn Only to Have Two New Cases Filed Days Later

By Kapil Gauhar

Bitfinex and Tether have had a lawsuit against them withdrawn by the plaintiffs. Also, they were refiled with the addition of a new plaintiff.

The two firms were accused of creating the biggest bubble in human history in a lawsuit filed in New York in October 2019. The lawsuit alleged that Bitfinex and Tether manipulated the cryptocurrency market out of up to $1.4 trillion. A 2nd yet similar case was then brought against the two firms by Eric Young and Adam Kutz. The two claimed that Bitfinex and Tether monopolized as well as conspired to monopolize the BTC market while attempting to manipulate the cryptosphere and making inaccurate claims.

Both the cases were built upon the longstanding claims which Tether essentially printed billions of dollars worth of tokens and convinced the market that there was a far better demand for virtual currencies than was the reality.

Both the firms are steadfast in their denial of the accusations, articulating the claims thrown at them as meritless as well as mercenary. The general counsel of Bitfinex, Stuart Hoegner, said that the refiled case was not only baseless but also will be disposed of in due course.

Tether stressed that its coin is backed 1:1 with the US dollar yet flip-floundered on this position in February when under scrutiny by the Department of Justice, changing its position to state its stores “now and again may incorporate different assets.” Tether at that point made another stroll once more from this case in April, when one of its legal advisors conceded in court that the USDT was in reality just 74% upheld with money or money counterparts.