Bitfinex was previously brought to court over research that revealed that Bitfinex and Tether participated in price manipulation. Bitfinex stated that the research is “foundationally flawed.”
Bitfinex and Tether have become no strangers to the legal system recently with the plentiful media attention on their honesty (or lack thereof) over what their platforms hold. Now, as if one lawsuit wasn’t good enough, the twosome has been hit with another class-action suit, which was filed this week. According to an article by Finance Magnates, Bitfinex is rejecting the claims made against it.
As Bitfinex sees it, the lawsuit has been brought on by a “copycat” that is against Bitfinex and Tether, stating that they’ve been manipulating Bitcoin prices with the stablecoin’s use.
The lawsuit, which was filed with the US District Court for the Western District of Washington, was filed on Friday, and was the second of its kind. The lawsuit was preceded by similar action by lawyers that brought the exchange to the US District Court for the Southern District of New York. The exchange stated,
“As we predicted last month, mercenary lawyers continue to try to use Bitfinex and Tether to obtain a payday. To be clear, there will be no nuisance settlements or settlements of any kind reached. Instead, all claims raised across both actions will be vigorously contested and ultimately disposed of in due course. Once they are, Bitfinex and Tether will fully evaluate their legal options against those bringing and promoting the baseless claims.”
iFinex operates both Bitfinex and Tether as the parent company, and the executives of iFinex control both companies, which has likely led to many of the controversies. There’s been research published by two academics, revealing that Tether was manipulating Bitcoin prices ahead of the 2017 rally.
However, the plot thickened as Bitfinex was used to manipulate the market in this circumstance, which put both of the companies on the line. Even with this research, Bitfinex and Tether have both attempted to shut down the claims, stating that the study was “foundationally flawed.”
Bitfinex added that neither they nor their affiliates had manipulated the market or the price of tokens with Tether tokens. They added,
“It is irresponsible to suggest that Tether or Bitfinex enable illicit activity due to the efficiency, liquidity, and wide-scale applicability of Tether’s products within the cryptocurrency economy.”
Controversy is already common in the cryptocurrency industry, based on consumers that have still yet to catch up with the trend. However, the issues surrounding Bitfinex and Tether continue to follow the platform, as yet another lawsuit has come against them for price manipulation.