Tether and Bitfinex decry expected "meritless and mercenary" cryptocurrency market manipulation lawsuit
October 5, 2019, 8:13AM EDT
1 min read
Tether claimed in a company post today that the firm expects a self-described "meritless and mercenary lawsuit" based on a study that states, according to Tether, "that Tether issuances are responsible for manipulating the cryptocurrency market."
Bitfinex, Tether's affiliated company, issued a similar company statement today, with the word "Bitfinex" replacing "Tether" through much of the post. According to the Bitfinex statement, "These baseless accusations are an attempt to undermine the growth and success of the entire digital token community, of which Bitfinex and Tether are key parts."
Tether claims that "Tether and its affiliates have never used Tether tokens or issuances to manipulate the cryptocurrency market or token pricing. All Tether tokens are fully backed by reserves and are issued pursuant to market demand, and not for the purpose of controlling the pricing of crypto assets."
The expected lawsuit and response come as Bitfinex and Tether are engaged in an ongoing lawsuit with the NYOAG related to "fraud being carried out" by the firms due to representations that Tether was fully backed when, in fact, there was a purported $851 million gap in backing due to loss or theft of funds to Crypto Capital.