Fun

Plaintiffs amend complaint in Tether lawsuit for alleged USDT scheme

News Feed - 2024-07-16 08:07:42

Alex O’Donnell52 minutes agoPlaintiffs amend complaint in Tether lawsuit for alleged USDT schemeThe class-action lawsuit alleges Tether and Bitfinix conspired to manipulate crypto market prices.277 Total views2 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksPlaintiffs in a years-long class-action lawsuit against Tether and Bitfinix filed an amended complaint accusing the companies of manipulating crypto prices through a deceptive scheme involving USDT, Tether’s dollar-backed stablecoin, according to court documents filed in the Southern District of New York. 


The complaint alleges Tether and Bitfinix “executed a sophisticated scheme to fraudulently inflate the price” of cryptocurrencies, including Bitcoin (BTC), through “massive, carefully timed purchases […] to signal to the market that there was enormous demand and thus cause the price of those commodities to spike.”


The companies purportedly financed these purchases with billions of dollars in USDT, which — in contradiction to repeated assurances by Tether — was not, in fact, backed one-to-one by United States dollars. In doing so, the Plaintiffs claim that Tether and Bitfinix violated both the Commodities Exchange Act (CEA) and the Sherman Antitrust Act.


Related:SEC vs. Ripple: One year on since landmark ruling


“In reality, Tether issued billions of USDT to itself with no US dollar backing — simply creating the USDT out of thin air,” according to the complaint, which goes on to allege that the deception “ultimately result[ed] in billions of dollars of damage to innocent crypto commodity purchasers.”An exhibit from the amended filing highlighting alleged suspicious trading activity on the Bitstamp exchange. Source: CourtListener.com


This is the third complaint to be filed in this case, which was opened in 2019 and has since faced repeated delays, including the removal of the Plaintiffs’ original legal counsel in 2022. Tether and Bitfinex challenged the Plaintiff’s request to amend the complaint in 2023, calling it a last ditch effort to revive a failing case.


“The reason for this dramatic change of course is clear: two years of fact discovery —including more than a million pages of document discovery and numerous [...] depositions — have not revealed a single shred of evidence supporting the market manipulation scheme alleged in the [Complaint],” the Defendants argued.


Plaintiffs assert that “[e]xpert analysis shows that Bitfinex and Tether issued unbacked USDT and used that debased USDT to buy large amounts of crypto commodities” in the filing.


Magazine:Decade after Ethereum ICO: Blockchain forensics end double-spending debate# Bitcoin# Blockchain# Cryptocurrencies# Law# Business# Government# Bitcoin Regulation# United States# Cryptocurrency Exchange# Binance# Tether# RegulationAdd reaction

News Feed

Ana Paula Pereira7 hours agoArkansas counties rush to pass noise regulations for crypto minersSeveral counties in the U.S. state of Arkansas are hurrying to adopt new ordinances before August, when crypto mining faciliti
Argentina to Revamp Anti Money Laundering Law, Proposes Creation of VASP Registry
Argentina to Revamp Anti Money Laundering Law, Proposes Creation of VASP Registry Argentina is preparing to revamp its anti-money laundering and terrorism financing law. It has pro
Jesse Coghlan5 hours agoCrypto ‘regulatory approach isn’t needed now’ — New Zealand central bankHowever, the Reserve Bank of New Zealand also said that crypto and stablecoins should be more closely monitored.2065
How Exodus Passkeys wallet claims to simplify Web3 onboarding
Helen Partz14 hours agoHow Exodus Passkeys wallet claims to simplify Web3 onboardingThe Exodus Passkeys Wallet allows users to set limits on transactions while ensuring that users have full control over their assets.1769
Market Update: Bitcoin Cash Shines as Crypto Markets Show Bullish Signals
Market Update: Bitcoin Cash Shines as Crypto Markets Show Bullish Signals Digital currency markets are in the green again today after seeing some moderate losses the day prior. T
Goldman Sachs Sees Higher US Recession Risk Citing Concerns the Fed Will ‘Respond Forcefully’ to High Inflation
Goldman Sachs Sees Higher US Recession Risk Citing Concerns the Fed Will "Respond Forcefully" to High Inflation Goldman Sachs’ economists now see an increased risk of a U.S.
This Year’s Super Bowl Attendees to Get Commemorative NFT Tickets From NFL, Ticketmaster
This Year"s Super Bowl Attendees to Get Commemorative NFT Tickets From NFL, Ticketmaster The National Football League (NFL) has announced the American football organization plans t
Jesse Coghlan17 hours agoBitcoin-friendly Javier Milei wins most votes in Argentina primary electionArgentine presidential hopeful Javier Milei — a pro-Bitcoin, anti-central bank libertarian — has won a majority of t
Russian Businesses to Choose Which Crypto to Use for Cross-Border Settlements, Lawmaker Says
Russian Businesses to Choose Which Crypto to Use for Cross-Border Settlements, Lawmaker Says Russian companies may start transacting in cryptocurrency with partners abroad as early
Tiny 500Gh home Bitcoin mining device produced a block, earning over $200K BTC
Christopher Roark2 hours agoTiny 500Gh home Bitcoin mining device produced a block, earning over $200K BTCThe device, called a ‘Bitaxe,’ successfully mined a block even though its chances were only 1 out of 1 billion
Justin Trudeau Slams Pierre Poilievre for Telling People They Can ‘Opt out’ of Inflation by Investing in Cryptocurrency
Justin Trudeau Slams Pierre Poilievre for Telling People They Can "Opt out" of Inflation by Investing in Cryptocurrency Canadian Prime Minister Justin Trudeau has slammed Pierre Po
Ghana Central Bank Announces Launch of Regulatory Sandbox
Ghana Central Bank Announces Launch of Regulatory Sandbox Ghana’s recently launched regulatory and innovation sandbox is the latest proof of the central bank’s commit