Crypto Traders File $1.4T Class Action Against Bitfinex and Tether
Main page News, Cryptocurrency Exchanges

A class action lawsuit against crypto exchange Bitfinex and stablecoin issuer Tether has been filed in the United States District Court in the Southern District of New York, The Block reported yesterday.

The plaintiffs estimate they lost $1.4 trillion as a result of Bitfinex's and Tether's actions. The lawsuit has been filed by Vel Freedman and Kyle Roche, two lawyers who successfully sued Craig Wright in Florida federal court.

The plaintiffs also accuse Bitfinex of violating the Commodities Exchange and federal RICO statute. According to the plaintiffs, Bitfinex organized "a sophisticated scheme based on crypto tech and used it to defraud investors, manipulate markets and conceal illicit profits."

Counts I, II and III of the lawsuit allege Bitfinex violated the Commodities Exchange Act. Count IV alleges antitrust violations, particularly by claiming that Tether controls more than 80% of the stablecoins market in the US and abroad, giving the company "monopoly power." According to count V, the company violated the federal RICO statute law on fighting organized crime and corruption, while count VI alleges fraud against the defendants. The last two counts mention violations of the New York City Trade Practices Act as well as a justification for the lawsuit.

The defendants include Bitfinex, Tether, its parent company iFinex Inc. as well as several related organizations and executives.

Tether and Bitfinex have reported in the past that an "unfounded lawsuit" based on "erroneous assumptions, incomplete and biased data, and a false methodology" was being prepared.

Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.

Read also:
Please describe the error