Bitfinex and Tether face class action for $1.4 trillion

Posted 08 October, 2019

Bitfinex and Tether have faced a class action case filed with the Southern District Court of New York. The group of plaintiffs cites that the subject companies massed market with unsecured tokens based on the US dollar rate blowing the major market bubble.
 According to the document, the case was launched by Kyle W. Roche and Velvel Freedman. Notably, they have already managed to win the case against Kreig Wright in Florida.

Extra charges include violation of the law on commodity exchanges and the Racketeer Influenced and Corrupt Organizations Act.

The claim starts:

"This action concerns a sophisticated scheme that coopted a disruptive innovation — cryptocurrency — and used it to defraud investors, manipulate markets, and conceal illicit proceeds."

The plaintiffs provided arguments to prove that Bitfinex broke the effective exchange law and classified Tether as a monopoly. In particular, it was stated that Tether holds over 80% of the stable coin market within and beyond the USA, which violated the antimonopoly law. 

The defendants are said to be parent company iFinex, Bitfinex, Tether and affiliated companies and managers. 

"Calculating damages at this stage is premature, but there is little doubt that the scale of the harm wrought by the Defendants is unprecedented. Their liability to the putative class likely surpasses $1.4 trillion U.S. dollars," the lawsuit reads.

Last weekend, the companies informed that they could become subject to unreasonable case based on wrong arguments and incomplete data.

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