Tether puts a lawsuit of $ 1 trillion for manipulation
Tether puts a lawsuit of $ 1 trillion for manipulation
The US district judge Katherine Polk Failla, the responsible in your favor. She dismissed half of the claims raised by the plaintiffs against the defendant. The remaining claims, Tether and Bitfinex, described them as "groundless". Therefore, they are not ready to cents up with them.
the market manipulation saga
The plaintiffs who presented the case to the court said that the defendants were deceptive, market manipulative and contrary. As a result, they claimed to have lost money. In over five years, Tether has spent unsavory tokens. Bitfinex would later buy cryptocurrencies on the free market to increase the price of market burglaries.
According to the lawsuit, this led to the total market capitalization of cryptocurrencies at the end of 2017 to $ 795 billion.
The plaintiffs are five crypto dealers who claim that cryptocurrencies bought at excessive prices and thereby suffered financial losses. As an action for a class, the lawsuit represents everyone in the United States that could have damaged excessive prices.
The lawyers of the accused argued in a supportive memorandum that the case would break apart. Due to the accusation, Tether printed his USDT tablecoins based on the accusation without solid support. There is no direct knowledge and no proof of this.
They also argued that the plaintiffs had not shown that the cryptocurrency prices were actually artificial at that time.
The court would reject claims on market manipulation and rico conspiracy based on the memorandum. The reason is that the plaintiffs cannot prove that they have suffered financial damage from the defendants.The court would also reject complaints about competitive and monopolistic behavior. In the class action, it could not be proven how the defendant tried to assert a dominant position through price increases.
complaint after the other
In 2019, the New York general attorney Letitia James said that they would investigate Bitfinex. Tether also came into the spotlight to him because of the belonging of the stock exchange. The case was about the alleged coverage of damage of $ 850 million. At that time, Tether's lawyer admitted that Tether was only supported 74 %.
tether was able to include the case with the state of New York. According to the conditions of the comparison agreement, Tether was prevented from doing business in New York. Bitfinex and Tether did not admit any misconduct, but the court imposed a fine of $ 18.5 million.
The court also asked Tether to present quarterly reserve reports for the next two years. Since then there have been other complaints, both larger and smaller ones in relation to Tether and Bitfinex.