Bitfinex and Tether Accused of Causing $1.4 Trillion in Damages to Crypto Market
A lawsuit has been filed against Bitfinex and Tether, alleging that they have caused $1.4 trillion in damages to the crypto market. The lawsuit claims that the companies engaged in bank fraud, money laundering, and market manipulation. Tether has denied these claims, stating that they are based on a “bogus study.”
Disputes Over Key Topics During Testimony
During the testimony, both the plaintiffs and defendants have debated various topics. These include the loss and destruction of important trading documents, the loan policies of the companies, and the wallets holding Tether’s flagship stablecoin, USDT. The court filing from August highlights the need to determine if the accounts holding USDT reserves were mixed with other assets and to assess the sufficiency of Tether’s reserves.
Tether Claims Full Backing for USDT Supply
As of June 30, 2023, Tether asserts that the current supply of USDT, totaling $82 billion tokens, is fully backed with $3 billion in excess reserves.
Hot Take: Lawsuit Alleges Massive Damage to Crypto Market by Bitfinex and Tether
A lawsuit filed against Bitfinex and Tether accuses the companies of causing $1.4 trillion in damages to the crypto market. The allegations include bank fraud, money laundering, and market manipulation. Tether denies the claims, labeling them as unfounded. The ongoing testimony has seen both sides disputing various matters, such as the loss of trading documents, loan policies, and the reserves backing Tether’s USDT stablecoin. The court filing emphasizes the need to determine if the accounts holding USDT reserves were mixed with other assets. Tether maintains that their USDT supply is fully backed with $3 billion in excess reserves.
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