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Bitfinex exchange appeals $1.4 trillion investor lawsuit

Bitfinex exchange appeals $1.4 trillion investor lawsuit

Cryptocurrency exchange Bitfinex intends to file a motion in the district court for the southern district of new York to dismiss a class action filed against the exchange last month.

Several people have accused the Bitfinex exchange and Tether of market manipulation, hiding revenue, and defrauding investors. They also demanded a $1.4 trillion payment from Bitfinex. In addition, the plaintiffs rely on statements from the new York Prosecutor’s office, claiming that the Tether USDT tokens were not permanently pegged to the us dollar.

However, the exchange said that these charges are based on research and scientific articles by employees of the University of Texas, which do not fully disclose the methodology for regulating cryptocurrencies and predicting the dynamics of the exchange rate of digital assets. Bitfinex writes that the plaintiffs do not attach importance to other factors that affected the value of bitcoin in 2017.

The exchange believes that the statements against it and Tether are unfounded, since the plaintiffs have no evidence that the companies manipulated the market, which was almost seven hundred times higher than the total volume of USDT in circulation from March to December 2017. The exchange stressed that these accusations will seem ridiculous to any experienced and rational participant in the cryptocurrency industry.

Bitfinex added that it will appeal this claim and will protect its interests, as well as the interests of its customers, partners and the cryptocurrency community, expressing the hope that the court will rely only on objective facts. Recall that in July, the new York Prosecutor’s office presented new evidence that Bitfinex and Tether interacted with new York investors for much longer than they claimed.