iFinex – the parent company of crypto exchange Bitfinex – along with Tether has filed a motion dismissing allegations of Bitcoin market manipulation. Crypto exchange Bitfinex faces accusations of Bitcoin manipulation using the USD-backed Tether (USDT) stablecoin.

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In the lawsuit, the plaintiff Bitfinex pumped billions-of-dollars worth USDT in the crypto market, without actually backing with the U.S. Dollar. Last October 2019, the plaintiff accused Bitfinex of anti-competitive and deceptive behavior in the Class Action Complaint (CAC). This complaint notes that such manipulation by Bitfinex led to crypto market valuations surging over $800 billion in late 2017.

Debunking all these claims, Bitfinex said that there’s no concrete proof of its involvement. It notes that the CAC has spun a whole new story that “elaborates scheme of epic fraud”. However, the plaintiff fails to provide sufficient proof backing those claims, notes Bitfinex.

In the motion filed on Thursday, September 3, Bitfinex said:

“Plaintiffs attempt to patch this gaping hole in the CAC with unsupported conclusions and rank speculation, rather than allegations of fact. Such conclusory allegations cannot save the claims against the Exchange Defendants.”

Bitfinex Asks Plaintiffs to Show Proof of Monetary Losses

While blaming Bifitinex for market manipulation, the plaintiffs claimed of losing money by purchasing cryptocurrencies at inflated prices. In the counterclaim, Bitfinex notes that the plaintiffs have not shown proof of their losses or proof that the crypto prices were artificially inflated at the time in question.

Thus, Bitfinex calls out the plaintiffs for “unfounded allegations” without the real knowledge of any manipulation. The motion added:

There isn’t a “single sustainable allegation that the Exchange Defendants—Bittrex, Inc. and Poloneix, LLC—had any knowledge of or role in the scheme”.

Bitinex adds that since the plaintiffs cannot provide proof of their monetary loss at the hands of the exchange, all the charges of monopolistic and anti-competitive behavior against the exchange should be thrown out.

Stablecoin-operator Tether has also been facing separate lawsuits for its alleged involvement in market manipulation. Tether has also provided the proof-of-funds on several occasions in the past when requested. As per data aggregator CoinMarketCap, Tether has a circulating supply of 13,751,463,500 USDT, each valued at $1.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.