A lawsuit against Tether and Bitfinex has been withdrawn
A lawsuit against Tether and Bitfinex has been withdrawn
Crypto

A lawsuit against Tether and Bitfinex has been withdrawn

By Marco Cavicchioli - 10 Jan 2020

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One of the lawsuits against Tether and Bitfinex has been withdrawn by the plaintiffs. This case was filed on November 22nd, 2019 by Eric Young and Adam Kurtz against iFinex, the parent company of Tether and Bitfinex, for alleged market manipulation. 

In fact, the two plaintiffs, both bitcoin traders, had accused the exchange of providing inaccurate information and monopolizing the bitcoin market. This lawsuit was based on the previous case of the Attorney General of the State of New York, Letitia James, who accused the two companies of placing on the market a certain amount of USDT which did not correspond to the declared reserves in order to hide missing funds. 

In fact, Young and Kurtz accused Bitfinex and Tether of creating and introducing USDT into the market when bitcoin prices were falling in order to artificially increase the price. After increasing it they would then sell BTC to replenish USDT reserves. 

This charge has now been dropped, while that of Attorney General Letitia James is still pending, although even this charge does not appear to be progressing.

In reality, it is not yet known why the plaintiffs have decided to withdraw the lawsuit, but at this point, Bitfinex’s denial of market manipulation a few months ago appears much more credible. Besides, it appears that the plaintiffs have failed to produce evidence to support their allegations

To date, Bitfinex and Tether have been accused of creating USDT out of thin air to manipulate the market, or to cope with sudden liquidity crises, several times, but none of these allegations have yet proved to be correct. 

In fact, the lack of evidence prevents an official verdict from being reached, whereas the evidence to the contrary seems quite clear. 

Therefore, not only should the presumption of innocence apply, which means that no one should be found guilty until it is proven, but the more time goes by, the more unfounded these accusations seem to be. 

Surely a first clear verdict will be written when the case of Attorney General Letitia James comes to an end, which could happen in the coming months. 

 

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 11 thousand subscribers.

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