Tether and Bitfinex Lawsuit Resubmitted in New Court

Plaintiffs of the Tether and Bitfinex lawsuit have resubmitted the ongoing class action in a new court. Karen Lerner, one of the attorneys, claims that the plaintiffs refiled the case to claim the rights of Bitcoin and Bitcoin futures traders. How will this new development impact the ongoing lawsuit? 

13 January, 2020 | AtoZ Markets – Two plaintiffs sent the lawsuit against iFinex Inc., Bitfinex and Tether to a new court. The plaintiffs (Eric Young and Adam Kurtz) withdrew the case on 7 January and then refiled on 8 January to the new court. The case of Bitfinex and Tether case initially started last November, when plaintiffs claimed that the crypto exchange Bitfinex and the stablecoin firm Tether issued incorrect information and ” conspired to monopolize the Bitcoin market”. 

The Lawsuit against Bitfinex Got Revised and Refiled

The western district court of Washington returned the case to Eric Young and Adam Kurtz. Since the crypto traders were standing behind the third lawsuit against Tether. However, the lawsuit got filed again with the addition of a new plaintiff – David Crystal. Additionally, the plaintiffs moved the case from Washington D.C. at the Southern District Court of New York. According to Karen Lerner, one of the attorneys working on the case:

“The plaintiffs refiled the case to effectively vindicate the rights of Bitcoin traders and Bitcoin futures traders.”

The crypto exchange, Bitfinex has raised community suspicions since 2017 after analysts began to suspect price manipulations. According to some researchers, the Tether stablecoin has pumped Bitcoin several times during 2017 and 2019 to manipulate the price of Bitcoin. The defendants raised the price of Bitcoin, then withdraw it from the market.

Many of the crypto traders who lost money during the specific months in 2017 and 2019 want compensation and a legal investigation. Earlier AtoZMarkets reported that a class-action lawsuit had been filed against Bitfinex and Tether in the U.S. District Court for the Western District of Washington. The original court filing explains:

When bitcoin prices were declining, the defendants and their co-conspirators printed USD and artificially raised the price of bitcoin. The defendants and their co-conspirators then converted the bitcoin to USD to replenish Tether’s reserves.

Read More: Crypto Exchange Cobinhood Shuts Down and Freezes Deposits

Both Tether and Bitfinex Have Denied the Claims

Stuart Hoegner is Bitfinex’s attorney general for the entire case. Regardless of where the plaintiffs filed the class action, according to Mr. Hoegner the case against Bitfinex is “meritless”. Therefore, Mr. Hoegnier comments that the court will likely dismiss the class action soon. He added in his statement that:

“The plaintiffs have determined that their action should be filed in the Southern District of New York. It raises the question of why it was in Washington state in the first place. Whether the complaint filed in Washington State or the Southern District of New York, it remains completely meritless. And it will be disposed of in due course.”

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