Tether and iFinex, the parent company behind Bitfinex exchange on Thursday, filed a motion to dissolve a long-running market manipulation lawsuit against them. A group of crypto traders accused the exchange of receiving unbacked USDTs, which they used to inflate the price of cryptocurrencies.
However, the defendants have moved to dismiss the case, as there is no solid evidence to back the allegations.
Bitfinex Accused of Market Manipulation by Crypto Traders
The plaintiffs, who are a group of five crypto traders, filed the class-action lawsuits against the exchange on the matter, naming also Tether and two other cryptocurrency exchange, Bittrex, and Poloniex. They alleged that Bitfinex received up to $3 billion-worth of unbacked Tether stablecoin. That is, the exchange didn’t return the US dollar equivalent of the cryptos it received to Tether.
Allegedly, Bitfinex then used the cryptocurrencies to inflate prices in the market during the downturns. This single act resulted in the surge in the cryptocurrency market in late 2017, with the market capitalization reaching $795 billion at the time, the plaintiffs claimed. As a result, they claim to have incurred monetary losses since they bought their cryptocurrencies at a manipulated price.
Bitfinex Want The Lawsuit Dismissed
Following the motion filed by the defendants, they want the lawsuit to be dismissed, given that the plaintiffs are yet to provide solid evidence to validate their claim. The defendants’ lawyers also reiterated this, saying that there is no backing for the accusation that Tether issued unbanked USDTs to the cryptocurrency exchange. So, the plaintiffs were not making allegations of fact.
Concerning the two other exchanges in named in the lawsuit, the lawyers argued in the motion, saying:
“There is not a “single sustainable allegation that the Exchange Defendants—Bittrex, Inc. and Poloneix, LLC—had any knowledge of or role in the scheme.”