February 27, 2024

Bitfinex Exchange appeals investor claim for $ 1.4 trillion

Cryptocurrency exchange Bitfinex intends to file a motion in the District Court for the Southern District of New York to dismissclass action lawsuit filed against the stock exchange last month.

Several people have blamed the Bitfinex exchange andTether in market manipulation, hiding incomes and investor fraud. They also demanded a payment of $ 1.4 trillion from Bitfinex. In addition, plaintiffs rely on allegations from New York City prosecutors alleging that Tether USDT tokens were not permanently pegged to the US dollar.

However, the exchange said that these chargesbased on research and scientific articles from the University of Texas, which do not fully disclose the methodology for regulating cryptocurrencies and forecasting the dynamics of the rate of digital assets. Bitfinex writes that the plaintiffs do not attach importance to other factors that influenced the value of bitcoin in 2017.

The exchange believes that statements against it and Tetherare unfounded, since the plaintiffs have no evidence that the companies were manipulating a market that was almost seven hundred times higher than the total volume of USDT in circulation from March to December 2017. The exchange emphasized that these allegations would seem ridiculous to any experienced and rational participant in the cryptocurrency industry.

Bitfinex added that it will appeal this claim and willprotect their interests, as well as the interests of their clients, partners and the cryptocurrency community, expressing the hope that the court will rely only on objective facts. In July, New York City prosecutors provided new evidence that Bitfinex and Tether had worked with New York investors for much longer than they claimed.