Tether and Bitfinex CTO Summoned for Testimony in Lawsuit Alleging Market Manipulation

Tether’s CTO Set to Testify in Class-Action Lawsuit

Paolo Ardoino, the CTO of Tether and Bitfinex, is scheduled to testify in a class-action lawsuit this week. The lawsuit, which has been ongoing since 2019, alleges financial misconduct by both companies. A New York judge denied the request to delay Ardoino’s deposition, causing the defense to scramble for time.

Dispute Over Scope of Testimony

The lawsuit is also examining the sufficiency of Tether’s reserves, leading to disputes over the topics Ardoino can discuss in his deposition. The judge’s latest order specifies that he can only speak on undisputed topics, such as alleged gaps in trading records and the companies’ loan-making policies.

Tether’s Dominance and Regulatory Concerns

Tether currently holds a 64% share of the stablecoin market and has a market capitalization of $83.6 billion. However, U.S. regulatory agencies have expressed concerns about its reserves. Tether and Bitfinex previously settled an investigation with the New York State Attorney General, resulting in a ban on their activities in New York.

Court Criticizes Defendants’ Lack of Preparation

Judge Katherine Polk Failla criticized the defendants for their lack of preparation and expressed concerns about the pace of the lawsuit. Market participants are closely watching the outcome of Ardoino’s deposition, as it could significantly impact Tether, Bitfinex, and the broader crypto market.

Hot Take: Potential Implications for Tether and the Crypto Market

Tether and Bitfinex’s involvement in the class-action lawsuit and the outcome of Paolo Ardoino’s testimony have significant implications for both companies and the wider crypto market. The lawsuit’s allegations of financial misconduct and scrutiny of Tether’s reserves have raised concerns among regulators. The judge’s order limiting Ardoino’s deposition topics adds further complexity to the case. The market will be watching closely to see how these developments unfold and their potential impact on Tether’s dominance and the overall stability of the crypto market.