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Bittrex and Poloniex Added to New Tether Lawsuit Filings


cryptobriefing.com 05 June 2020 07:50, UTC
Reading time: ~2 m

Crypto exchanges Bittrex and Poloniex have been issued a summons as part of a class-action lawsuit alleging that both entities were aware of USDT‘s questionable dollar backing.

Bittrex and Poloniex Caught Up in Ongoing Tether Saga

The original lawsuit filed against the closely linked Bitfinex and Tether accuses the defendants of printing USDT without fiat backing.

That Tether printing, the suit alleges, contributed to the 2017 bull run crypto markets enjoyed.

The plaintiffs claim unbacked USDT caused crypto asset prices: 

“to spike far above their legitimate value in the largest bubble in human history, and ultimately resulting in billions of dollars of damage to innocent crypto commodity purchasers.”

They have now dragged Bittrex and Poloniex into the lawsuit. The new claims argue that the two crypto exchanges facilitated Tether and Bitfinex in placing large purchases on their platforms. The added complaint states:

“With the willing assistance of Bittrex, Inc. (“Bittrex”) and Poloniex LLC (“Poloniex”), two other crypto-exchanges, Bitfinex and Tether used fraudulently issued USDT to make strategically timed, massive purchases of cryptocommodities just when the price of those commodities was falling.”

On behalf of the class of investors who are alleged to have suffered economic losses due to Tether and Bitfinex market manipulation, the five claimants argued in the amendment that the exchanges “worked closely with Tether and adopted its guarantee that each USDT is backed by one U.S. dollar.” 

Tether and Bitfinex have been at the center of the USDT controversy and are currently seeking to have the lawsuit dismissed.

Their parent company, Digifinex, as well as Crypto Capital Corp and Global Trade Solutions AG, have also been named in the civil suit.

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