The Tether and Binfinex owner have "caught another case" and this time it's because of alledged manipulation of Bitcoin prices.
A class-action complaint was filed on Sunday over “propping and popping the largest bubble in history,” leading to the disappearance of around USD 265 billion in wealth from the crypto sphere.
The lawsuit was filed at the U.S. District Court for the Southern District of New York by a few investors. The investors claim iFinex can execute effectively unbacked Bitcoin buy orders that may not cost them anything with unbacked Tether.
Tether is said to be backed 1:1 by fiat reserves, the company revealed earlier in the year that it may also use other assets to support its value.
The orders may artificially prop or push up prices in the illiquid crypto market, the complaint said.
“Whatever the case might be and however the court might find the outcome, this suit will bring an unprecedented level of transparency to Tether,” Emin Gun Sirer, an associate professor at Cornell University, said on Twitter. “That’s something that almost everyone will agree is a good thing for the whole space.”
(Source Bloomberg)
Tether replied and said that it “anticipates meritless and mercenary lawsuit based on bogus study.”
“Tether and its affiliates have never used Tether tokens or issuances to manipulate the cryptocurrency market or token pricing,” the statement said.
Tether still has other lawsuits in the pipeline as in April, the New York Attorney General accused the companies behind Tether and Bitfinex of working together and losing more than USD 850 million in client and corporate funds. Both cases still continue.
All information and content on this website, from this website or from FX daily ltd. should be viewed as educational only. Although the author, FX daily ltd. and its contributors believe the information and contents to be accurate, we neither guarantee their accuracy nor assume any liability for errors. The concepts and methods introduced should be used to stimulate intelligent trading decisions. Any mention of profits should be considered hypothetical and may not reflect slippage, liquidity and fees in live trading. Unless otherwise stated, all illustrations are made with the benefit of hindsight. There is risk of loss as well as profit in trading. It should not be presumed that the methods presented on this website or from material obtained from this website in any manner will be profitable or that they will not result in losses. Past performance is not a guarantee of future results. It is the responsibility of each trader to determine their own financial suitability. FX daily ltd. cannot be held responsible for any direct or indirect loss incurred by applying any of the information obtained here. Futures, forex, equities and options trading contains substantial risk, is not for every trader, and only risk capital should be used. Any form of trading, including forex, options, hedging and spreads, contains risk. Past performance is not indicative of future FX daily ltd. are not Registered Financial Investment Advisors, securities brokers-dealers or brokers of the U.S. Securities and Exchange Commission or with any state securities regulatory authority OR UK FCA. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest, with or without seeking advice, then any consequences resulting from your investments are your sole responsibility FX daily ltd. does not assume responsibility for any profits or losses in any stocks, options, futures or trading strategy mentioned on the website, newsletter, online trading room or trading classes. All information should be taken as educational purposes only.
Recommended Content
Editors’ Picks
Worldcoin Price Prediction: Is WLD done with uptrend after 77% rally?
Worldcoin has paused its uptrend as it currently trades at $1.57. This move comes after the altcoin rallied a whopping 77% in just three days, between September 13 and 16. As WLD hovers aimlessly, investors need to be patient to catch the next volatile move.
Ethereum whales prepare ahead of futures Ethereum ETF approval on October 2
Ethereum (ETH) price is likely going to witness a massive spike in volatility soon due to the circumstances surrounding the approval of the token’s futures Exchange-Traded Fund (ETF). According to Twitter users, the ETF is likely going to be approved on October 2.
Ripple Price Forecast: Declining network growth and underwater XRP holders suggest more downside for XRP price
Ripple (XRP) price shows a lack of buying pressure after its win against the US Securities and Exchange Commission (SEC) on July 13. Since then, the remittance token has been on a downtrend. Considering Ripple’s current position, a further decline would not be surprising.
Chainlink Price Prediction: LINK bears set to wipe 25% gains
-637336005550289133_XtraSmall.jpg)
Chainlink price shows an exhaustion of the bullish momentum as it approaches a key reversal zone. This development could see LINK trigger a steep correction that could undo recent gains.
Bitcoin: BTC downside likely after 20-week EMA culls bulls
Bitcoin (BTC) bearish price fractal, as discussed in a previous article, is underway, but the lack of volatility is causing ambiguity and doubt. Regardless, BTC might see a bit of an upside before the long-term bearish scenario plays out.