tl;dr
Stablecoin issuer Tether and cryptocurrency exchange Bitfinex are facing an amended class action lawsuit, accused of market manipulation and antitrust law violations. The lawsuit, filed in the United States District Court Southern District of New York, alleges that the companies violated the Commodi...
Tether and Bitfinex are facing an amended class action lawsuit over allegations of market manipulation, violation of antitrust laws, and fraudulently inflating crypto commodity prices.
The lawsuit, filed in the United States District Court Southern District of New York, accuses the companies of violating the Commodities Exchange Act through market manipulation, monopolization, and restraint of trade.
It claims that Tether and Bitfinex inflated cryptocurrency prices by pushing their USD-backed stablecoin USDT into the market while not fully backed, creating an illusion of increased cryptocurrency demand.
The lawsuit also mentions the removal of the original legal counsel representing the plaintiffs and alleges the existence of chat and deposition logs from the companies' operators admitting to manipulative actions.
According to the filing, Tether and Bitfinex executed a sophisticated scheme to fraudulently inflate the price of crypto commodities, including bitcoin.
The latest lawsuit is part of an ongoing class action lawsuit, with Tether and Bitfinex facing allegations of market manipulation and antitrust law violations.
The amended complaint accuses the companies of executing a scheme to fraudulently inflate the price of crypto commodities by pushing their USD-backed stablecoin USDT into the market while not fully backed, thereby creating an illusion of increased cryptocurrency demand.
While the first complaint contained eight causes of action, the amended copy held twelve causes of actions, confirming that the most recent iteration is a slimmed version.
Furthermore, the lawsuit has faced drawbacks, including the removal of crypto law firm Roche Freedman originally representing the plaintiffs, and alleged chat and deposition logs from the companies' operators admitting to manipulative actions.
It's noteworthy that a Tether spokesperson has refuted the claims in the second amended complaint.