$ 1.4 trillion class action lawsuit filed in New York against Bitfinex and Tether

1.4 trillion class action lawsuit filed in New York against Bitfinex and Tether

A class action lawsuit has been filed today with the Southern District District Court of New York against the $ 1.4 trillion cryptocurrency exchange Bitfinex and the stablecoin issuer Tether.

According to the document, the participants in the lawsuit charged the companies with flooding the market with unsecured tokens tied to the US dollar. In their opinion, this led to the emergence of “the largest bubble in the history of mankind.”

The lawsuit was filed by lawyers Kyle Roche and Vel Freedman, who had previously won a lawsuit against Craig Wright in the federal court of Florida. Lawyers also accuse Bitfinex of violating the RICO law (The Racketeer Influenced and Corrupt Organizations Act – the US law on investing capital obtained from racketeering) and the Law on Commodity Exchanges.

In their appeal, lawyers refer to publicly available documents and claim that Bitfinex created “a very complex and confusing scheme based on cryptocurrency technologies and thereby manipulated the markets, tricked investors and hid illegal income”

Paragraphs I, II, and III of the lawsuit state that by manipulating the market, Bitfinex violated the Law on Commodity Exchanges. Paragraph IV states that “over 80% of the stablecoin market in the United States and beyond is controlled by Tether,” thereby violating antitrust laws. In paragraph V, the company is accused of violating the RICO law, and in paragraph VI of defrauding the plaintiffs. In the last two paragraphs, Bitfinex is accused of violating the New York City Trading Practices Act and provides a rationale for a court order.

Read This Now:   Polkadot will launch the Kusama network to experiment with the protocol

Key claimants include Bitfinex, Tether and their parent company iFinex Inc., as well as a number of related executives and smaller entities (BFXNA Inc., BFXWW Inc., DigFinex Inc., Crypto Capital Corp., etc. .).

“The companies Tether, Bitfinex, Crypto Capital and their managers committed a number of serious crimes, including bank fraud and electronic fraud, money laundering and transfer of funds received from various illegal activities, as well as money transfers without a license. It is still premature to calculate the full extent of the losses caused to the defendants, but there is no particular doubt that they exceed the amount of the claim of $ 1.4 trillion, ”the document says.

Recall that this Saturday on the Tether sites
and Bitfinex issued warnings that a “groundless lawsuit” was being prepared against them.


Notice: ob_end_flush(): failed to send buffer of zlib output compression (1) in /home/gamefeve/bitcoinminershashrate.com/wp-includes/functions.php on line 5420

Notice: ob_end_flush(): failed to send buffer of zlib output compression (1) in /home/gamefeve/bitcoinminershashrate.com/wp-includes/functions.php on line 5420