The plaintiffs in the lawsuit against Tether and Bitfinex have filed a scaled-down version of the complaint in the case to intensify the legal fight against the two crypto firms. The amended lawsuit filed in the Southern District of New York, alleges that both entities manipulated the crypto market.
The allegations portray a coordinated effort to manipulate the market of new digital currencies by issuing unbacked Tether (USDT) tokens.
Additionally, the new complaint is more specific than the previous one. It addresses the issues of market manipulation, monopolization, and restraint of trade, with the latter two being based on the Sherman Antitrust Act violations. This seems to be an attempt to group the various causes of action to make the case against the companies stronger.
Details from the Amended Complaint
The second amended complaint identifies certain actions by Tether and Bitfinex asserting that these firms deceived crypto traders and artificially pumped up the prices. This newest filing relies on deposition excerpts and chat logs. Arguing that Tether’s CFO, Giancarlo Devasini, knew that the large-scale creation of credit without real assets could manipulate Bitcoin prices.
Besides, the legal action marks the third filing in a saga that began in 2019. Each subsequent complaint has been narrowing the scope of allegations. The focus remains squarely on how Tether’s operations might have affected market stability and investor trust.
Tether Response and Ongoing Litigation
A representative for Tether has shrugged off the allegations made in the latest complaint. He stated, “We remain confident that we will prevail in this litigation, and that plaintiffs’ nonsensical conspiracy theories will be rejected.”
Nevertheless, the legal representatives of Tether do not seem concerned with the plaintiffs’ renewed efforts in this consolidated lawsuit. They are ready to counter what they regard as fabricated allegations.
During these legal proceedings, the court has experienced such events as shifts in the plaintiffs’ counsel and alterations to the complaint. The case is before the honorable U.S. District Judge Katherine Polk Failla who recently permitted the filing of this second amended complaint.
Market Reaction
Moreover, the lead plaintiffs, all U.S.-based cryptocurrency traders, represent a larger group concerned about the potential for market manipulation to cause widespread financial impacts. The resolution of this case could have far-reaching effects on regulatory practices and market operations for cryptocurrencies.
The outcome of this lawsuit will set important precedents for how digital currencies are regulated and managed across global markets.
