The complaint argued that Tether and Bitfinex took part in a manipulating scheme to artificially increase cryptocurrency prices, including Bitcoin.
In the ongoing class action lawsuit against Tether and Bitfinex, plaintiffs have filed a second amended complaint accusing the crypto companies of manipulating the crypto market and breaking antitrust laws.
The complaint argued that Tether and Bitfinex took part in a manipulating scheme to artificially increase cryptocurrency prices, including Bitcoin. They allegedly did this by making large, well-planned purchases to make it seem like there was high demand, which then caused the prices to spike.
The money for these purchases reportedly came from billions of dollars in USDT, which, despite what Tether said, were only partially backed by US dollars. Thus, the plaintiff argued that Tether and its sister crypto exchange Bitfinex broke US laws, specifically the Commodities Exchange Act and the Sherman Antitrust Act.
Disputes Over Lack of Evidence and Merits of the Claims
The crypto companies have disputed with the plaintiff, trying to amend the complaint last year, arguing that after two years of gathering information, there is no evidence to support the claim that they manipulated the market.
They further claimed that it was like asking to start over after they had already finished gathering information. However, Judge Failla allowed the plaintiff to file a second amended complaint in June. They said:
“The reason for this dramatic change, of course, is clear: two years of fact discovery – including more than a million pages of document discovery and numerous […] depositions – have not revealed a single shred of evidence supporting the market manipulation scheme alleged in the [ComplaintComplaint].”
While defending against the newly amended complaint a spokesperson for Tether argued that the claims in the second amended complaint lack any merit, just like the previous ones. The spokesperson continued by saying that what is of higher importance is fact and evidence, which, at present, the plaintiff lacks. The official maintained that the crypto firm remains optimistic about the outcome of the case and the plaintiff’s motion will be rejected. They stated:
“Ultimately, it is the facts and evidence that matters, not plaintiffs’ false and misleading allegations… We remain confident that we will prevail in this litigation, and that plaintiffs’ nonsensical conspiracy theories will be rejected.”
However, despite the crypto company’s insistence on lack of evidence, the plaintiff maintains that expert analysis has proven that both Bitfinex and Tether issued USDT that were not fully backed and used fake USDT to buy large amounts of cryptocurrencies.
This is the third complaint filed in this lawsuit, which was first opened in 2019, after which an amended complaint followed in 2020. The plaintiff is now making three main claims against Tether and Bitfinex, including manipulation of the cryptocurrency market, monopolization, and limited trade that goes against the Sherman Antitrust Act.
The case has faced several challenges, which include the removal of the plaintiffs’ first legal counsel in 2022 after some issues. The plaintiffs leading this case are US-based crypto traders including Matthew Script, Jason Leibowitz, Pinchas Goldshtein, and Benjamin Leibowitz.
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