Tether and Bitfinex CTO to Testify in Market Manipulation Suit

Paolo Ardoino, the Chief Technology Officer of Tether and Bitfinex, is set to testify this week in a class-action lawsuit. The lawsuit has embroiled both firms since 2019. Moreover, a New York judge denied the request for delaying Ardoino’s deposition to October, leaving the defense scrambling for time.

Initially filed in 2019 by LeboBTC co-founder Jason Leibowitz, the lawsuit alleges financial misconduct against Bitfinex and Tether. Consequently, the plaintiff class is seeking over $1.4 trillion in damages. The accusations range from bank fraud to money laundering. Tether, however, has firmly denied any wrongdoing.

Tensions Rise Over the Scope of Ardoino’s Testimony

Besides financial misconduct, the lawsuit is probing into the sufficiency of Tether’s reserves. Previously, both parties clashed over what topics Ardoino’s deposition could cover. These include alleged gaps in trading records, the companies’ loan-making policies, and the wallets that held Tether’s reserves. Hence, the judge’s latest order specifies that Arduino must speak on undisputed topics only.

Significantly, Tether dominates the stablecoin market with a 64% share. Its current market capitalization sits at a whopping $83.6 billion. However, regulatory agencies in the U.S. have had concerns about Tether’s reserves. Last year, Tether and Bitfinex settled an investigation with the New York State Attorney General, resulting in a ban on their business activities in New York.

Court Cites Defendants’ Actions for Lack of Preparation

Judge Katherine Polk Failla had sharp words for the defendants, stating that any lack of preparation was “largely of their own doing.” Additionally, she expressed concerns about the lawsuit’s pace. She clarified that adding one more topic since August shouldn’t significantly burden the defendants.

Consequently, market participants watch closely as Tether and Bitfinex navigate the convoluted legal landscape. What comes out of this week’s deposition could significantly impact these firms and the broader crypto market.

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Kelvin Munene Murithi

Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.

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