April 23, 2024

Bitfinex to file $ 1.4 trillion investor claim rejection

Cryptocurrency exchange Bitfinex intends to file a motion to dismiss in the Southern District of New York court$ 1.4 trillion “unreasonable class action lawsuit”

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Last month, a group of investors filed againstiFinex Inc., its subsidiaries and top managers are in a class action lawsuit accusing them of violating the US Commodity Exchange Act, the RICO Act, money laundering, Pump &amp; Dump, market manipulation through the issuance of USDT and deliberate deception of investors.

Bitfinex says the allegations are unfounded andinsufficient "even for the earliest stage of the trial." Representatives of the exchange emphasized that a significant part of the plaintiff's arguments is based on a recent study by professors John Griffin and Amin Shams. According to the document, a major player at Bitfinex allegedly could control the price of bitcoin in 2017, and the rally was the result of market manipulations.

The company is convinced that the study contains “methodological flaws”, and the statement that only one whale could cause a rapid rally of bitcoin is “ridiculous”.

“The lawsuit ignores many other factors,influenced the sharp rise in bitcoin prices in 2017. In addition, it unprovenly claims that Tether somehow manipulated a market seven hundred times the size of the USDT market supply for the period from March to December of that year. Experienced and discreet researchers of the digital asset ecosystem understand that this is ridiculous. ”- says the blog of the trading platform.

Finally, Bitfinex stressed that it intends to zealously defend the interests of the company, its users, stakeholders and the cryptocurrency community.

Recall that the founder of Crypto Capital, Oz Yosef, who is involved in the Bitfinex Bitcoin Exchange case against the state of New York, was charged with bank fraud at the end of October.

Shortly before this, Bitfinex issued a statement according to which the exchange not only did not help Crypto Capital with money laundering, but also became a victim of fraud.