- Bitfinex denies the accusations and fines a motion.
- The exchange explained its position in this case in a recent blog post.
The cryptocurrency exchange Bitfinex intends to file a motion to the Southern District of New York to dismiss the “frivolous class-action lawsuit” to the tune of $1.4 trillion.
Last month, a group of investors filed a class-action lawsuit against iFinex Inc., its subsidiaries and top managers, accusing them of violating the U.S. Commodity Exchange Act, the RICO Act, money laundering, Pump & Dump schemes, market manipulation through the issuance of USDT and deliberate fraud of investors.
Bitfinex believes the allegations are unfounded and insufficient "even for the earliest stage of the trial." Representatives of the exchange emphasized that a significant part of the 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 complaint also ignores an array of other factors that contributed to the spike in the price of bitcoin in 2017. Furthermore, the complaint claims, without evidence and in defiance of reason, that somehow Tether manipulated a market more than seven hundred times the size of total Tether USDT issuances in circulation between March and December of 2017, something that any sophisticated and rational observer of the digital token ecosystem knows to be ridiculous".
Finally, Bitfinex stressed that it intends to zealously defend the interests of the company, its users, stakeholders and the cryptocurrency community.
Notably, 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.
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