Tether and Bitfinex are in hot water again. The stablecoin issuer and crypto exchange are targets of a fresh class action lawsuit. The suit alleges market manipulation and antitrust violations.
The case was filed in New York. It's a slimmed-down version of an ongoing legal battle. The plaintiffs are five individuals. They claim Tether and Bitfinex broke the law.
The lawsuit is no joke. It accuses the firms of violating the Commodities Exchange Act. The allegations are serious. Market manipulation, monopolization, and trade restraint are on the list.
Tether's alleged scheme was clever. The company supposedly pumped unbacked USDT into the market. This created fake demand for crypto. It's a bit like printing money out of thin air.
The result? Crypto prices went through the roof. Tether allegedly facilitated trading on credit and loaned funds. It's a recipe for a market bubble.
This isn't the first rodeo for Tether and Bitfinex. Previous complaints were filed in 2019 and 2020. The current suit is a trimmed-down version. It's got fewer causes of action.
The case has had its share of drama. The original law firm, Roche Freedman, got the boot. Their founder, Kyle Roche, was caught on tape. He admitted to filing bogus lawsuits. Not a good look for a lawyer.
The new complaint has some juicy details. It claims to have chat logs and deposition records. These allegedly show the companies' operators admitting to manipulation. If true, it's a smoking gun.
Tether isn't taking this lying down. A spokesperson dismissed the claims. They say the lawsuit has no merit. It's a classic "he said, she said" situation.
The stakes are high. Tether's USDT is a $83 billion behemoth. But what's even more important, stablecoins are gaining momentum, and - led by Tether - are now the lifeblood of the crypto market. That's to sat the least. If these allegations stick, it could shake the entire industry to its core.
This case is far from over. It's a slow-moving train wreck that the crypto world can't look away from. Grab your popcorn, folks. This legal drama is just getting started.