Tether and Bitfinex Face Market Manipulation Allegations

In a significant legal development, Tether and Bitfinex are embroiled in a revised class action lawsuit alleging market manipulation and antitrust violations.

The lawsuit, filed in the Southern District of New York, accuses the companies of violating the Commodities Exchange Act through practices that artificially inflated cryptocurrency prices.

Plaintiffs including Matthew Script, Benjamin Leibowitz, Jason Leibowitz, Aaron Leibowitz, and Pinchas Goldshtein claim that Tether’s issuance of USDT, purportedly not fully backed by USD reserves as claimed, created false impressions of market demand.

This alleged scheme, they argue, facilitated trading on credit and loaned funds, driving up prices of cryptocurrencies like Bitcoin.

The amended complaint, a streamlined version of earlier filings, refines the accusations against Tether and Bitfinex. It focuses on claims of manipulating crypto commodity markets to gain unfair advantages, impacting broader investor confidence and market integrity.

Notably, the lawsuit follows previous legal actions against the companies, indicating ongoing scrutiny of their operational practices amidst the evolving regulatory landscape governing digital assets.

Despite Tether’s denial of the allegations and assertions of meritlessness, the case has garnered attention within the cryptocurrency community and regulatory circles alike.