[2019-10-7] Lawsuit Claims Bitfinex, Tether Cost Crypto Market Over $1 Trillion
bitfinex and tether are back in the headlines again.
claims of cryptocurrency market manipulation are at the forefront of a class action lawsuit just filed in federal court in NY:
A new lawsuit claims crypto exchange Bitfinex and its sister company Tether manipulated the crypto market, harming traders and benefiting themselves.
Bitfinex and a number of affiliated entities engaged in deceptive, anti-competitive and market-manipulating practices, resulting in economic damages for the plaintiffs, according to a lawsuit filed Sunday in New York.
Notably, the plaintiffs, who seek class-action status, claim that the total damages add up to more than $1 trillion, writing:
“Calculating damages at this stage is premature, but there is little doubt that the scale of harm wrought by the Defendants is unprecedented. Their liability to the putative class likely surpasses $1.4 trillion U.S. dollars.”
The lawsuit, filed by David Leibowitz, Benjamin Leibowitz, Jason Leibowitz, Aaron Leibowitz and Pinchas Goldshtein, are represented by Vel Freedman and Kyle Roche – the lawyers who recently won a federal case against Craig Wright. Bitfinex, Tether, Digfinex and current executives; former chief strategy officer Philip Potter; and payment processor Crypto Capital are named as defendants in the case.
“The crimes committed by Tether, Bitfinex, Crypto Capital, and their executives include Bank Fraud, Money Laundering; Monetary Transactions Derived From Specified Unlawful Activities, Operating an Unlicensed Money Transmitting Business, and Wire Fraud,” the filing says.
tether quickly issued a response: https://tether.to/tether-anticipates-meritless-and-mercenary-lawsuit-based-on-bogus-study/