In an official statement, Bitfinex revealed that they will contest the class-action lawsuit filed by “mercenary” lawyers with the US District Court for the Western District of Washington on Nov 22. Bitfinex called this “copycat” lawsuit baseless.
Bitfinex accused of manipulating the market.
The plaintiffs claim that Bitfinex and Tether manipulated the cryptocurrency market for their own benefits. Earlier, Paradise Papers, reports the International Consortium of Investigative Journalists (ICIJ) unveiled a link between executives of the two companies.
The documents also revealed that two leading executives of Bitfinex, Giancarlo Devasini, and Philip Potter, were also beneficial owners of Tether, a stablecoin. Kyle Roche, the attorney filing the complaint, said that right in the height of the Bitcoin bubble, the Paradise Papers come out and show that same people control Tether and Bitfinex.
Bitfinex denies all claims.
Bitfinex has denied all claims of manipulating the cryptocurrency market. The company stated that all claims will be vigorously contested and ultimately disposed of in due course. Bitfinex further stated that these absurd and groundless accusations are an attack on the growth, success, and innovation of the cryptocurrency ecosystem.
Bitfinex is also facing a lawsuit filed by New York’s Attorney General. The attorney generals obtained a court order against the company for allegedly covering $850 million worth of USDT.