Tether Created ‘Largest Bubble in Human History’ Claims Lawsuit Against Bitfinex

Tether Created ‘Largest Bubble in Human History’ Claims Lawsuit Against Bitfinex
фото показано с : news.bitcoin.com

2019-10-9 01:40

A common attack against Tether in the crypto ecosystem is that the stablecoin isn’t really backed one-to-one by the U.S. dollar. We might soon get to know if these concerns are substantial, as the matter is now going to court. A new lawsuit against the operators of USDT accuses them of creating the largest bubble in human history, and causing well over a trillion dollars in damages.

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Tether Accused of Fraud and Market Manipulation

A class action lawsuit against the operators of Tether and the Bitfinex exchange was filed on Sunday with the United States District Court for the Southern District of New York. The lawsuit accuses the groups of managing a sophisticated scheme to defraud investors, manipulate markets, and conceal illicit proceeds. It came just a day after the two companies notified users of an imminent legal action which they were trying to frame as a shameless money grab attempt.

According to the complaint, Bitfinex and Tether commingled their corporate identities and customer funds while concealing their extensive cooperation. And they also lied to investors saying that the number of USDT tokens in circulation will always be the same as the amount of dollars in the companies’ bank accounts. This allegedly gave them the power to fake market demand for cryptocurrencies by just printing more USDT and using it to buy coins.

“Tether issued extraordinary amounts of unbacked USDT to manipulate cryptocurrency prices. 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 claims Tether created “the largest bubble in human history.” Over $1.4 Trillion in Damages

The amount of influence over the crypto market that the lawsuit assigns to the stablecoin is incredible. It states that from 2017 to 2018, Tether printed 2.8 billion USDT and used it to flood the Bitfinex exchange which artificially inflated demand for cryptocurrencies and caused prices to spike. Economists cited by the complaint estimate that as much as half the growth in the cryptocurrency market at that time was driven by this manipulative scheme.

“As the cryptocurrency market reached a fever pitch, Tether’s mass issuance of USDT created the largest bubble inhuman history. When it burst, over $450 billion of value disappeared in less than a month.”

According to the accusations the fallout from the crash when the USDT-infused bubble burst continues to affect the cryptocurrency market today, by causing prices to be lower than they would have been but for the market manipulation. And Tether and Bitfinex are said to continue to defraud the public these days, even in the face of an ongoing investigation by the New York Attorney General, the CFTC, and the Department of Justice. As for the potential compensation or settlement that the class action will seek, the lawyers state that calculating damages at this stage is premature, but that they could surpass $1.4 trillion U.S. dollars.

What do you think about the claims made against Tether and Bitfinex in this lawsuit? Share your thoughts in the comments section below.

Images courtesy of Shutterstock.

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against tether lawsuit bubble largest created human

Источник: news.bitcoin.com

against tether → Результатов: 126


Фото:

Piecing Together the Class Action Lawsuit Against Bitfinex and Tether

Just two days ago, Bitfinex announced they foresee a “meritless” lawsuit coming their way based on a study that has inconsistent assumptions and skewed findings. About a day later, it was revealed that several individuals have taken iFinex to court claiming that, with Tether, they single-handedly manipulated the entire cryptocurrency market, October 7, 2019.

2019-10-8 10:30


Tether’s new yuan-based stablecoin is the newest addition in circumventing regulations

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2019-9-10 22:15


Фото:

Judge Postpones Decision on NYAG Case Against Bitfinex and Tether

New York Supreme Court Judge Joel M. Cohen has postponed issuing a decision on whether the Office of the New York Attorney General’s case against Bitfinex and Tether will stand. Judge Cohen Requests More Time As previously reported by Bitcoinist, Bitfinex and the New York Attorney General’s office has been enmeshed in a lengthy legal dispute over allegations that Bitfinex illegally conducted business activities in the state of New York.

2019-7-29 21:36


Bitfinex-Tether CTO claims user demand drives USDT distribution as questions raised against Tether swap

The Bitcoin community was relishing in the coin’s performance recently. However, other crypto-enthusiasts appeared skeptical of the king coin’s growth. The suspicion of Tether and Bitfinex’s involvement  in the said surge constantly did the rounds, and with Tether Treasury printing USDT in the name of swaps, this suspicion was strengthened in the community.

2019-7-6 13:00


Binance DEX Adds First Stablecoin Trading Pair Of USDSB, A StableUSD (USDS) Variation

The USD-backed stablecoin of the Stably company- StableUSD-, has been added by Binance DEX as a native BEP2 crypto-asset under the name of USDSB. In a press release from Binance, the largest crypto exchange launched trading for two pairs comprising of USDSB against major stablecoin tether (USDT), as well as the USDSB-to-USDS trading pair today […]

2019-6-25 23:46


Фото:

Tether and Bitfinex Ask New York Attorney General for Fund Accessibility

Attorneys for Tether and Bitfinex are hoping to get the former access to its reserves amid a legal dispute with New York Office of the Attorney General (NYOAG). In a letter sent to the New York County Supreme Court, attorneys representing iFinex (the parent organization of Bitfinex) and Tether took issue with the restrictions that had been placed on Tether's transactions with related parties as part of an ongoing case against them, stating that the NYOAG had no basis for disallowing tether (USDT) holders and other affiliated entities from redeeming their tokens.

2019-5-16 18:51


New York Judge Denies Bitfinex’s Motion to Vacate Preliminary Injunction

The presiding judge over the New York OAG v. Bitfinex/Tether proceedings just ruled on Bitfinex’s ‘Motion to Vacate’ the OAG’s request for a preliminary injunction against them. That ruling can be found here: Bitfinex’s Motion to Vacate the OAG’s Request for Production of Documents Was Denied As a result of this order, the preliminary injunction that […]

2019-5-14 05:04


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