A class-action lawsuit against Tether and Bitfinex has taken a new turn as plaintiffs submitted an amended complaint.
The complaint, filed in the Southern District of New York, alleges that Tether and Bitfinex manipulated cryptocurrency prices, including Bitcoin (BTC), by injecting unbacked USDT into the market, contrary to Tether’s claims of one-for-one backing with US dollars.
The plaintiffs assert that this scheme led to financial losses and damages for investors, forming the basis of their accusation that Tether and Bitfinex violated the Commodities Exchange Act (CEA) and the Sherman Act.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe – We publish new crypto explainer videos every week!
This amended complaint marks the third iteration of the lawsuit, initially filed in 2019. In December 2023, Tether and Bitfinex opposed the second amendment attempt, calling it a desperate move to salvage a weak case. The defendants argued:
Plaintiffs’ Motion to Amend is in reality a motion for leave to start over <..>. The reason for this dramatic change of course is clear: two years of fact discovery <…> have not revealed a single shred of evidence supporting the market manipulation scheme alleged in the Amended Complaint.
The outcome of this case could have significant implications for the crypto industry, especially regarding the practices of stablecoin issuers and their impact on market stability and investor trust. As the legal battle continues, both sides remain entrenched in their positions, awaiting further developments.
In other news, last month, Tether’s new platform, Alloy by Tether, introduced aUSDT, a token over-collateralized by Tether Gold (XAUt) and pegged to the US dollar.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
