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On April 3, the cryptocurrency community learned of 11 class action lawsuits against various executives and digital asset companies. The law firm that filed the lawsuit is also involved in a collective action against Tether and Bitfinex for alleged manipulation of the bitcoin price. On June 4, plaintiffs and litigation firm, Roche Cyrulnik Freedman added the commercial platforms Bittrex and Poloniex to the list of defendants.
Plaintiffs Pinchas Goldshtein, Benjamin Leibowitz, Jason Leibowitz, Matthew Script, and Aaron Leibowitz are suing Ifinex, the parent company of Tether and Bitfinex. The lawsuit was announced last year and the plaintiffs are represented by the same lawyers who recently filed 11 class action lawsuits against some cryptocurrency companies and executives. Additionally, the law firm represents Kleiman’s estate in the case against Craig Wright.
According to the recent filing against Ifinex, through the use of the Bitfinex exchange and the use of tether (USDT), the four companies would have created “a sophisticated scheme that co-opted a disruptive innovation – cryptocurrency – and used it to defrauding investors, manipulating the markets and hiding illicit proceeds “.
“Part fraud, part pump-and-dump, and part money laundering, the scheme was carried out primarily through two firms,” the lawsuit says, referring to the exchange and the popular USDT stablecoin.
The amendment to the case presented on Wednesday also involves Poloniex and Bittrex. The claim is that all the named defendants took part in the scheme and helped manipulate the price of BTC.
The case was originally filed in October 2019 and the plaintiffs are demanding a whopping $ 1.4 trillion before punitive or triple damages. The latest paper suggests that Poloniex and Bittrex apparently used purposely created wallets to launder large amounts of USDT.
“Given the size and regularity of these transfers through a mechanism they created for that exact purpose and their perfect visibility into transactions, Bittrex and Poloniex knew the manipulative effect of the transactions on their exchanges,” the updated court filing points out. The applicants further state:
For otherwise peripheral exchanges, these large, supposedly fiat-backed USDT exchanges created an impression of legitimacy and consumer confidence, leading to additional trading and fees for the two exchanges.
Financial reporter Danny Nelson spoke with a representative of Bitfinex and Tether who said the allegations are not related to the facts. “[The lawsuit is] without constraints either to facts or to the law, ”Stuart Hoegner explained to Nelson. “[The plaintiffs] confusing perceived correlation with causality in an attempt to support false and unbearable theories, “he added in an e-mailed statement.
Just recently, news.Bitcoin.com spoke with Roche partner Cyrulnik Freedman, Kyle Roche, in an in-depth interview on the cryptocurrency cases his company has presented over the past two years.
What do you think about the addition of Poloniex and Bittrex to the Ifinex case? Let us know in the comments below.
Image credits: Shutterstock, Pixabay, Wiki Commons, Tether Logo,
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