April 23, 2024

Another class action lawsuit filed in Washington against Bitfinex and Tether

Cryptocurrency exchange Bitfinex announced another class action lawsuit against it and Tether — stablecoin issuerUSDT. The stock exchange considered this lawsuit “unfounded and mercenary.”

As Bitfinex wrote on its official website,On November 22, a lawsuit was filed against her in the District Court of the Western District of Washington. The exchange believes that the document contains similar flaws and “copied” complaints from a previous lawsuit filed in the District Court of the Southern District of New York in October.

Bitfinex accuses lawyers of greed,assuming they use a series of lawsuits only to earn big fees. The exchange is of the opinion that the complaints of the plaintiffs have no grounds and are filed with the aim of “crushing a dynamically developing platform that contributes to the development of the digital ecosystem”. At the same time, the exchange stated that it was not going to compromise and make decisions contrary to its own interests.

The exchange says it has never used USDT stablecoins to manipulate the cryptocurrency market.

“All USDT tokens are fully backed by reserves.These digital assets are issued and traded on our exchange based on market demand, and not for the purpose of controlling the price of cryptocurrencies,” — writes the Bitfinex exchange in its message to users.

The statements of the exchange are doubtful, sinceLess than six months ago, a Bitfinex lawyer confirmed that USDT was only provided with dollar reserves by 74%, and since then the company has not provided evidence of their full security.

Finally, Bitfinex added that it is unfair to blame the exchange for illegal actions if the Tether products are truly effective, liquid and in high demand among traders.

A class action lawsuit was filed in New York in Octoberagainst $ 1.4 trillion Bitfinex and Tether, in which they were accused of money laundering, fraud and cheating investors. However, this month the stock exchange hastened to appeal this lawsuit, having filed a motion with the District Court of the Southern District of New York.