Will iFinex's See Future Court Battles?
Founded in 2012, Bitfinex became many traders exchange of choice following the collapse of mtgox in 2014. They were the first exchange to introduce Tether in 2015, which was the world's first stablecoin and are closely associated with Tether. Both are owned by the same parent company iFinex and have common shareholders and management.
Since 2019, iFinex has encountered legal issues with regulators regarding Tether in the State of New York. It seems that that is not the only territory in the United states to take action against iFinex.
Class Action Lawsuit Launched in Washington State
In a similar lawsuit to the case in New York, the class action complain revolves around the same accusation. The complaint is that Bitfinex used Tether to manipulate the markets in a manner suitable to them. Allegedly Bitfinex used Tether to pump Bitcoin's price leading to the 2017 "bubble" when Bitcoin reached just under $20,000.
Bitfinex were rather quick to respond and deny all claims
Bitfinex Responds to Mercenary and Baseless Class Action Complaint in Washington State https://t.co/WnJfFXCMGe— Bitfinex (@bitfinex) November 24, 2019
"Bitfinex and its affiliates have never used Tether tokens or issuances to manipulate the cryptocurrency market or token pricing. All Tether tokens are fully backed by reserves and are issued and traded on Bitfinex pursuant to market demand, and not for the purpose of controlling the pricing of crypto assets. It is irresponsible to suggest that Tether or Bitfinex enable illicit activity due to the efficiency, liquidity and wide-scale applicability of Tether's products within the cryptocurrency economy."
Bitfinex & Tether's CTO Paolo Ardoino tweeted claiming "I can't wait to annihilate this one [court case] too". While Bitfinex & Tether might win this court case, others in other jurisdictions may follow and file a class action lawsuit as well.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado