Claimants who sued Bitfinex and Tether a year ago now now blame Bittrex and Poloniex.
A group of people, including Matthew Script, Benjamin Leibowitz, Jason Leibowitz, filed a lawsuit last year against Bitfinex and Tether. Plaintiffs claim that Bitfinex and Tether defrauded people and manipulated the market.
Tether claims that each USDT produced is backed by one USD and has enough dollar reserves. According to plaintiffs’ claims, USDT raided Tether in 2017 despite not having enough dollar reserves. Tether introduced these USDTs that it produced through Bitfinex, drawing the image of a large ‘demand’ and manipulating the market.
Bitcoin price has increased 25-fold between December 2016 and December 2017, from $ 800 to $ 20,000. However, these plaintiffs, who went to court in New York, argue that this mobility in price is due to Tether’s manipulations.
Bitcoin price started to drop rapidly a few weeks after reaching $ 20,000 in December 2017. According to plaintiffs’ claims, when the balloon bursting by Tether, the price of Bitcoin fell to $ 3,500. Thus, the market lost $ 450 billion in one year.
Bittrex and Poloniex
Under normal circumstances, this case was filed against iFinex (the company Bitfinex is affiliated with) and Tether. But there was an update on the case today. According to the publicly released case information, plaintiffs are now accusing Bittrex and Poloniex.
The plaintiffs claimed that Tether had printed USDT from the air and released these USDTs via Bitfinex. In the new file, it is claimed that Bittrex and Poloniex are aware of this situation and even help Bitfinex. The plaintiff claims that Bittrex and Poloniex helped manipulate the Bitfinex and Tether’s manipulative activities.