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- The plaintiffs claim that both Bittrex, Poloniex had used Bitcoin addresses, which were explicitly created by them to manipulate the market.
- Two exchanges were involved in the manipulation of markets during the 2017 bull run as well.
- The lawsuit claims that the cryptocurrency exchanges helped Bitfinex and Tether to misuse the USDT stablecoin creating a manipulated false price for the assets.
A tweet by Tether revealed that the lawsuit filed against Poloniex and Bittrex for class actions compromises the plaintiff’s claim.
Bittrex and Poloniex Filing in Class Action Undermines Plaintiffs’ Claims https://t.co/TuYlYve8CR
— Tether (@Tether_to) August 7, 2020
In the second attempt to sue the exchanges, plaintiffs had claimed that Bittrex had used Bitcoin addresses, which were explicitly created by them to manipulate the market in partnership with Poloniex. However, their second claim seems to be a blunder, just like its first one. This is because both the exchanges clarified that the addresses holding cryptos are neither owned nor controlled by them or Bitfinex. The statements sabotage the plaintiff’s attempt to file another class-action lawsuit.
Accused Bitfinex and Tether for Inflation Of USDT Supply In June
Some two months ago, plaintiffs claimed that the two exchanges were involved in the manipulation of markets during the 2017 bull run. Earlier, in 2019, the same plaintiffs again filed a class-action lawsuit against Bitfinex and its sister company, Tether. They were accused of supply inflations of Tether’s native stablecoin USDT during the 2017’s bull run. In both cases, the accusations were on behalf of the investors who bought crypto assets at manipulated prices, at least that is what they think.
As per the lawsuit, it was claimed that Tether supplied USDT stablecoin without proper back up from the US fiat currency. Again the class action lawsuit claims that the cryptocurrency exchanges, Bittrex Inc and Poloniex LLC with their assistance readily helped Bitfinex and Tether to misuse the USDT stablecoin creating a manipulated false price for the assets.
Exchanges Move Their Case For a Summary Judgement
Moreover, the attorneys representing Bittrex and Poloniex have moved for summary judgment for these recent allegations. The motion will look up to Bittrex, and Poloniex claims that the plaintiffs cannot produce evidence for the central premise of their claims.
However, this won’t stop the plaintiffs and their attorneys from creating new conspiracy theories to undermine the image of the involved exchanges. The main aim of the plaintiffs here is to claim the money by sabotaging the exchanges to which they have zero entitlement. Tether in a release assured that both Tether and its parent company Bitfinex would not settle for and entertain any of the filthy claims of the plaintiffs. The release further said that it would do its best to defend its customers, stakeholders, and its issued stablecoin from these false claims.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
