Blockchain 

How Severe Is Roche Freedman’s Lawsuit Against Tether and Bitfinex?

At the start of October, New York-based legal firm Roche Freedman filed a new class-action lawsuit against stablecoin firm Tether and digital currency exchange Bitfinex. The case accuses the aforementioned entities of manipulating the market by using a host of sophisticated schemes that involved fraud, pump-and-dump schemes, as well as certain money laundering-related ploys. As a result of this legal drama, the USDT/BTC trade pair has witnessed a substantial decline in its market value (around 10% as of press time). USDT/BTC price over the last seven days As per the…

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Blockchain 

Pursuing Copyright Decentralization in Bitfinex IEO

Kim Dotcom, the controversial internet entrepreneur and founder of the now-defunct file storage platform Megaupload, is making a comeback in the digital content business. This time, instead of a platform that allows users to download copyright songs and television series, Dotcom plans to use blockchain technology to create a fair digital content distribution market called K.IM. According to K.IM’s white paper, the proposed project is pitched as a dynamic ecosystem that is “aimed to become the easiest and the most secure way to generate revenue with digital content.” The project…

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Blockchain 

Class Action Accuses Tether and Bitfinex of Market Manipulation

A New York-based legal firm has filed a lawsuit against Tether and Bitfinex, accusing them of cryptocurrency market manipulation. “Largest bubble in history” Roche Freedman filed a class-action suit claiming that stablecoin firm Tether and its affiliate crypto exchange Bitfinex have been involved in defrauding investors, manipulating markets and concealing illicit proceeds, the firm’s founding partner Kyle Roche tweeted on Oct. 7. In the tweet, Roche accused Tether and Bitfinex of creating the “largest bubble in history.” Filed on Oct. 6, the complaint document states that Bitfinex and Tether primarily…

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Bitcoin 

Tether and Bitfinex Expect a Market Manipulation Lawsuit: Official

Stablecoin firm Tether and its affiliate exchange Bitfinex anticipate a lawsuit alleging that Tether token (USDT) is involved in market manipulation as the result of an unpublished paper. Tether and Bitfinex to defend its position On Oct. 5, both Tether and Bitfinex published statements claiming that they had become aware of an unreleased paper “falsely positing that Tether issuances are responsible for manipulating the cryptocurrency market.”  Both firms argued that findings and conclusions claimed by that unpublished source relies on “flawed assumptions, incomplete and cherry-picked data, and faulty methodology.” Both…

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Blockchain 

Bitfinex and Tether Respond to New York Judge, Will Pursue Appeals

Bitfinex and Tether have replied to Judge Joel Cohen’s recent ruling in the New York Attorney General (NYAG) ongoing case against companies. Cohen dismissed Bitfinex’s motion to throw out the case due to lack of jurisdiction, so the NYAG will continue to prosecute the companies via the Martin Act. Bitfinex issued its reply in an official blog post on Aug. 20. Tether published the same response on its website, also on Aug. 20. The companies maintain that the NYAG’s claims are meritless and say they will pursue the issues at…

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Blockchain 

New York Court Rules That State Attorney Has Jurisdiction Over Bitfinex

The New York State Supreme Court has ruled that the New York Office of the Attorney General (NYAG) has jurisdiction over cryptocurrency exchange Bitfinex. According to a court filing on Aug. 19, this will allow the NYAG to continue its investigation of the exchange over allegations of fraud and misleading investors.  In the filing, Judge Joel Coehn dismissed a motion by Bitfinex to terminate an action by the NYAG that would prosecute Bitinex under a New York law — the Martin Act. The NYAG originally alleged that Bitfinex and associated…

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Blockchain 

NYAG Argues Against Continued Stay of Demands for Bitfinex

The New York Office of the Attorney General (NYAG) has submitted a letter to Justice Joel M. Cohen, arguing that cryptocurrency exchange Bitfinex and affiliated Stablecoin firm Tether should not be granted a continuing stay of demands. The NYAG submitted its letter on August 1 — the latest chapter in the New York Attorney General’s ongoing case against Bitfinex, parent company iFinex and Tether, in which the state alleges a multimillion loss coverup took place. The motivation for NYAG’s letter The court initially issued a stay of document demands in…

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Ethereum 

Judge Rules to Extend Bitfinex and iFinex Case in New York

Justice Joel M. Cohen of the New York Supreme Court (NYSC) has ruled to extend the preliminary injunction in the ongoing case of crypto exchange Bitfinex and Tether’s parent company, iFinex, against the New York Attorney General (NYAG), on July 29. Cohen reportedly decided to give a 90 day extension to the case, which apparently means that OAG can continue investigating. Lawyers of Tether tried to appeal to dismiss the motion immediately, but Cohen rejected their appeal. Speaking before the court, iFinex also argued that the court does not have…

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Ethereum 

US-Based Traders Can Still Access Bitfinex Services

United States-based traders can still purportedly access Bitfinex’s cryptocurrency trading services, despite recent claims that the firm is not active in the state. An anonymous source told blockchain and crypto news agency The Block that they were able to access Bitfinex from within the borders of the state of New York, according to a July 26 report.  Per The Block, the unnamed trader created an account with the tongue-in-cheek username “ImaNYresident”, and subsequently gained access to the platform by simply selecting a query stating that they are not a U.S.…

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Bitcoin 

Bitfinex and Tether Double Down on Claim of No Customers in New York

Lawyers for Bitfinex and Tether, in the course of an ongoing case against the New York Attorney General (NYAG), submitted multiple fillings on July 22 alleging that the companies never served customers within New York.  In one filing, attorney Stuart Hoegner noted the provision in Bitfinex’s terms of service that require that customers that transact be foreign entities: “Under Bitfinex’s and Tether’s Terms of Service, Eligible Contract Participants (“ECPs”) that transact with Bitfinex or Tether must be foreign entities. Although those foreign entities may have shareholders or personnel who reside…

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