March 29, 2024

$ 1.4 trillion class action lawsuit filed in New York against Bitfinex and Tether

A class action lawsuit has been filed in the District Court for the Southern District of New York against the cryptocurrency exchange Bitfinex and the issuer$ 1.8 trillion stablecoin Tether.

According to the document, the participants in the lawsuit filedcompanies accused of flooding the market with unsecured tokens pegged to the US dollar. In their opinion, this led to the emergence of "the largest bubble in the history of mankind."

The lawsuit was initiated by five people who did notare clients of the exchange. They will be represented during the trial by lawyers Kyle Roche and Vel Freedman, who previously won a case against Craig Wright in federal court in Florida. Lawyers also accuse Bitfinex of violating the RICO Act (The Racketeer Influenced and Corrupt Organizations Act) and the Commodity Exchange Act.

In their appeal, lawyers refer topublicly available documents and claim that Bitfinex created “a very complex and confusing scheme based on cryptocurrency technologies and thereby manipulated markets, tricked investors and hid illegal income”

Clauses I, II, and III of the claim state that,By manipulating the market, Bitfinex violated the Law on Commodity Exchanges. Paragraph IV states that “Tether controls the more than 80% of the stablecoin market in the United States and beyond,” thereby violating antitrust laws. In paragraph V, the company is accused of violating the RICO law, and in paragraph VI, the plaintiffs are deceived. In the last two paragraphs, Bitfinex is accused of violating the New York City Trading Practices Act and provides a rationale for a court order.

Among the main defendants in the lawsuit are indicatedBitfinex, Tether and their parent company iFinex Inc., as well as a number of related executives and smaller entities (BFXNA Inc., BFXWW Inc., DigFinex Inc., Crypto Capital Corp., etc.).

“Tether, Bitfinex, Crypto Capital and theirThe executives committed a number of serious crimes, including bank and wire fraud, laundering and transferring funds obtained from various illegal activities, and conducting money transfers without a license. It is still premature to calculate the full extent of the losses caused to the defendants, but there is little doubt that they exceed the amount of the claim of $1.4 trillion,” — the document says.

Recall that this Saturday on the Tether and Bitfinex sites warnings were published that a “groundless lawsuit” was being prepared against them.

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