- November 24, 2019
- Posted by: icoblock
- Category: Uncategorized
The controversy around Bitfinex and Tether continues. Apparently, the company is under legal attack as yet another “copycat” class action lawsuit has been filed against it with the US District Court for the Western District of Washington.
Bitfinex Responds Against A Mysterious Complaint
According to an official statement, “mercenary” lawyers continue to attack Bitfinex and Tether and they have filed a class-action lawsuit against the company with the US District Court for the Western District of Washington.
The announcement didn’t really share any information about the lawsuit itself, but it revealed that the new claim is similar to those from back at the beginning of October. At that time, Bitfinex and Tether were the subjects of a study which claimed that Tether issuances are responsible for manipulating the cryptocurrency market.
The company affirmatively denies any possible involvement or fault on Bitfinex’s side. In fact, the response goes even further by hinting that they might take legal actions against the so-called “mercenary lawyers.” Additionally, the statement suggests that this is an attack on the whole cryptocurrency community:
“[…] All claims raised across both actions will be vigorously contested and ultimately disposed of in due course. Once they are, Bitfinex and Tether will fully evaluate their legal option against those bringing and promoting baseless claims[…] These absurd and groundless accusations are an attack on the growth, success, and innovation of the entire digital token ecosystem, in which Bitfinex is proud to play a critical role[…] Our fight is the community’s fight.”
Tether and Bitfinex Defend Their Ground
Tether and Bitfinex are operated by one company called iFinex and they have been the center of controversial stories more than once.
Arguably, one of the most serious legal cases involves iFinex against the U.S. Justice Department and New York’s Attorney General. Earlier this year, the NYAG obtained a court order against the company for allegedly covering $850 million worth of USDT. Bitfinex and Tether denied the accusations, saying that they were “written in bad faith,” and the case is yet to see a final resolution.
Market manipulation is another thing that the company has been accused of. Two US-based academics recently updated their paper, suggesting that Tether (USDT) was used to artificially inflate Bitcoin’s price during its parabolic increase in 2017.