The dazzling news about the lawsuit against Bitfinex and its companion Tether has spread its flame rapidly in the crypto market. On one side the blame is that they are manipulating the market giving jolts to the plaintiffs with overall damage of about $1 trillion, on the other side, Bitfinex firmly resists the flawed assumptions and claims that this incomplete and cherry-picked data cannot act as a concrete shot to reach the conclusive end.
According to the lawsuit filed on Sunday in Newyork
‘’The crimes committed by Tether, Bitfinex, Crypto capital, and their and their executives include Bank Fraud, Money Laundering; Monetary transactions Derived From Specified Unlawful Activities, Operating an Unlicensed Monet Transmitting Business and Wire Fraud’’
The plaintiffs further added
‘’Tether used extraordinary amounts of unbacked USDT to manipulate cryptocurrency prices. Because the market believed the lie that one USDT equaled one US Dollar, Bitfinex and Tether had the power to, and did, manipulate the market on an unprecedented scale to profit from boom-and-bust cycles they created’’
Although Bitfinex did not point any competitor but made a statement that these fragile accusations are an attempt to cease the overall growth and the progress of the entire digital token community.
The lawsuit, filed by David Leibowitz, Benjamin Leibowitz, Jason Leibowitz, and Pinchas Goldshtein and further represented and controlled by Val Freedman and Kyle Roche, lawyers who recently emerged victorious in the federal case against Craig Wright. Their accusations state that Tether is the backbone for the ‘largest bubble in financial history’ and is solely responsible to manipulate bitcoins price and answerable for the disappearing of about $265 billion worth of cryptocurrencies from the market. In response to the ‘’1-1 pegged dollar’’ statement and ‘’100% backed’’ phrase, the plaintiffs wrote
‘’It’s now absolutely clear that Tether no longer has cash reserves to back USDT at a 1:1 ratio. The Bitfinex and Tether defendants engaged in unfair, deceptive, untrue or misleading practices by omitting, or failing to disclose the material fact that USDT was no backed by 1:1 and that the market demand created by the Bitfinex and Tether was fraudulent’’
The document focuses on ‘WHAT’ without highlighting ‘How’
Interestingly, the document covers no solid examples to meet with the needs of the accusations without any tangible evidence, it seems to be a vague claim as the document does not explain in any way about how Bitfinex managed to influence the market. It just focused on ‘what’ without highlighting the ‘how’ factor which also makes it a void group of words trying to create a magnitude that actually doesn’t exist.
Thus Tether too had anticipated the same, as no précised details are given to verify the accuracy of the accusations.
‘’Tether and its affiliates have never used Tether tokens or issuances to manipulate the cryptocurrency market or token pricing. All Tether tokens are fully backed by reserves and are issued pursuant to market demand, and not for the purpose of controlling the pricing of crypto assets. It is irresponsible to suggest that Tether enables illicit activity due to its efficiency. Liquidity and wide-scale applicability within the cryptocurrency ecosystem’’.
Earlier this month before the lawsuit was filed, Tether had said
‘’Anticipates meritless and mercenary lawsuit based on the bogus study. Tether and its affiliates have never used Tether tokens or issuances to manipulate the crypto market’
So it is quite possible that the roots of the lawsuit originate from the lap of some of the competitors of Tether and Bitfinex but equally, chances are that the latent face of the same is being revealed. The dice in the game called crypto can, in a couple of moments turn to take a ‘U’ move so any inference is difficult to be drawn as the game may have some other hidden players who are still beneath the mass and are playing a ‘puppet game’ with Bitfinex.C It can be a conspiracy , but for now it would not be fair to point out in the dearth of concrete evidence, but the saga of investigation is still lingering…