Bitfinex and Tether’s CTO to be Deposed in Ongoing Lawsuit
Paolo Ardoino, the CTO of Bitfinex and Tether, is set to be deposed this week as part of a long-running class-action lawsuit against both companies and their insiders. The deposition was originally scheduled for Wednesday but was subject to a request for delay from the defendants. The lawsuit, filed in 2019, alleges that Bitfinex and Tether have caused over $1.4 trillion in damages to the crypto market through financial misconduct such as bank fraud and money laundering. Tether has denied these allegations. The deposition will cover agreed-upon topics that are considered undisputed, and the court has expressed concerns about the pace of the lawsuit.
Controversy Surrounding the Deposition
There has been disagreement between the two parties about the topics that can be covered in Ardoino’s deposition. The plaintiffs are particularly interested in accounts that are claimed to hold reserves for Tether and whether these reserves were commingled with other assets. The defendants have cited gaps in trading records and have requested more time to adequately prepare for the deposition. However, the court has stated that any lack of preparation on the defendants’ part is largely their own doing.
Regulatory Issues and Recent Settlement
Tether has faced regulatory scrutiny in the past, and in 2021, it settled a two-year-old investigation by the New York State Attorney General, which resulted in restrictions on its operations in New York. The ongoing lawsuit adds to the legal challenges faced by Bitfinex and Tether in recent years.
Hot Take: The Significance of Ardoino’s Deposition
The deposition of Paolo Ardoino, the CTO of Bitfinex and Tether, is a significant development in the long-running class-action lawsuit against the two companies. It provides an opportunity for the plaintiffs to gather information and evidence regarding the alleged financial misconduct of Bitfinex and Tether, including the commingling of reserves and the sufficiency of Tether’s reserves. The court’s insistence on the deposition proceeding as scheduled demonstrates its commitment to moving the lawsuit forward and addressing concerns about the pace of the case. The outcome of this deposition could have far-reaching implications for the future of Bitfinex, Tether, and the broader crypto market.
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