Towards the end of August this year, a judge ruled that Craig Wright, the self-proclaimed creator of Bitcoin, must hand over half of all Bitcoin mined before 2014 to the estate of Kleiman. However, Craig Wright has vowed to challenge the ruling in court. The lawyers that won that lawsuit are now going after Bitfinex.
Going After Bitfinex
According to court documents filed on October 6, the lawyers that won the lawsuit against Craig Wright want Bitfinex held accountable for alleged market manipulation. Their lawsuit is based on a research paper that claims the historic BTC bull run that later fizzled was caused by the issuance of 2.8B USDT by Tether. They claim this was a well-calculated move to defraud investors and conceal their proceeds of crime.
However, Tether and Bitfinex appear to have anticipated this lawsuit. They put out a blog post on October 5 calling the lawsuit meritless. Additionally, they described it as nothing more than an attempted money grab.
The blog post tore into the research paper and they described it as based on flawed assumptions and methodology based on selective data. Additionally, the blog post suggested that the paper’s true motive was to solicit plaintiffs for the filing of this opportunistic lawsuit.
In the blog post, Tether and Bitfinex emphasized that they had never used USDT for market manipulation. Paolo Ardoino put a tweet, which claimed the lawsuit was an attack on the crypto industry. The lawsuit claims that Tether and Bitfinex violated various laws in the US such as the RICO Statute and the Sherman Act.