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.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ether, Ripple: Crypto starship starts the engines, pointing beyond limits

Yesterday, Ether made a strong impact and shot its dominance level up 10%, easily surpassing the SMA200 and registering one of the most significant upward movements in one day since records began.

More Bitcoin News

Ripple's Price Analysis: XRP/USD struggles to settle above $0.2000 amid improved market sentiments

XRP/USD is changing hands marginally above $0.2000 with over 10% of gains since this time on Monday. The third-largest digital asset with the current market value of $9 billion 

More Ripple News

Ethereum Price Analysis: ETH/USD skyrockets above $170.00, next target $200.00

ETH/USD jumped above $176.00 during early Asian hours as the bullish momentum increased after the coin broke above the psychological $150.00.

More Ethereum News

EOS Price Analysis: EOS/USD bulls aim to take the price above $2.80

EOS/USD had a hugely Monday as the price jumped from $2.35 to $2.76. The price has increased a little more to $2.794 in the early hours of Tuesday. The bulls also managed to break past ...

More EOS News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: BTC breaks its ties with stocks, strives to return its safe-haven status

Most part of the week Bitcoin has been on the recovery path. Slowly but surely the coin left $6,500 behind and even tested waters above $7,000.

Read the weekly forecast

BTC

ETH

XRP