A class action lawsuit was filed today against Bitfinex and Tether alleging violations of the Commodities Exchange and federal RICO statute, among other claims. The sum of damages outlined in the suit is unprecedented – over $1.4 trillion in damages suffered by class members.
A review of the court document reveals that the plaintiffs are referring to the fact that both firms allegedly defrauded investors, manipulated markets, and concealed illicit proceeds. In the case of Tether specifically, the plaintiffs allege that they company has a virtual monopoly on stablecoins, controlling over 80% of the market for such coins.
With many controversial events surrounding cryptocurrencies and tokens in the last 2 years, including allegations of pump and dump schemes and many other manipulations in digital asset markets, this lawsuit brings to light a new mechanism of holding firms accountable for possible inappropriate actions. Perhaps this case will serve as a precedent? Only time will tell.
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