Bitfinex Lawsuit Plaintiffs Call Case Dismissal Arguments 'Meritless'
- Multiple class-action lawsuits against the two companies are consolidated into one.
A New York district court has been requested to scrap the appeal of Bitfinex and Tether for dropping the consolidated class-action lawsuit against them.
The arguments in question were made in the court by the legal representatives of Phillip G. Potter, the former chief strategy officer of Bitfinex and Tether.
In a plaintiffs' letter reviewed by Finance Magnates, the judge stated that “Potter’s arguments in support of his proposed motion are meritless. His legal arguments against Plaintiffs’ claims are based on inappropriate or inapplicable legal standards.”
The Wrongdoings of Two Major Crypto Companies?
In multiple class-action action lawsuits against the two sister companies, the plaintiffs alleged that Potter was involved in “extensive fraudulent and unlawful conduct.”
According to the lawsuit, Potter, along with business partner and another defendant in the case Giancarlo Devasini, formed Tether in 2014 after rebranding another Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term issuer Realcoin. The plaintiffs alleged that Potter concealed his controlling role in both Bitfinex and Tether, two major firms in the cryptocurrency industry.
The class-action lawsuits also blamed the two companies for manipulating Bitcoin prices during the 2017 bull run.
The allegations were largely based on the revelations made by the Paradise Papers in 2017, and a research report by two American academics – John Griffin, a professor at the University of Texas, and Amin Shams, an assistant professor at the Ohio State University.
The plaintiffs also alleged that Potter made repeated public statements specifying the company’s intent to evade banking laws and anti-Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term regulations.
“This is more than sufficient to state fraud claims against Potter,” the plaintiffs' letter added.
“...his arguments that Plaintiffs do not sufficiently allege his role in Defendants’ manipulative scheme are contradicted by allegations that show he was a key member of that scheme, as Chief Strategy Officer for Bitfinex and Tether,” the letter noted.
A New York district court has been requested to scrap the appeal of Bitfinex and Tether for dropping the consolidated class-action lawsuit against them.
The arguments in question were made in the court by the legal representatives of Phillip G. Potter, the former chief strategy officer of Bitfinex and Tether.
In a plaintiffs' letter reviewed by Finance Magnates, the judge stated that “Potter’s arguments in support of his proposed motion are meritless. His legal arguments against Plaintiffs’ claims are based on inappropriate or inapplicable legal standards.”
The Wrongdoings of Two Major Crypto Companies?
In multiple class-action action lawsuits against the two sister companies, the plaintiffs alleged that Potter was involved in “extensive fraudulent and unlawful conduct.”
According to the lawsuit, Potter, along with business partner and another defendant in the case Giancarlo Devasini, formed Tether in 2014 after rebranding another Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term issuer Realcoin. The plaintiffs alleged that Potter concealed his controlling role in both Bitfinex and Tether, two major firms in the cryptocurrency industry.
The class-action lawsuits also blamed the two companies for manipulating Bitcoin prices during the 2017 bull run.
The allegations were largely based on the revelations made by the Paradise Papers in 2017, and a research report by two American academics – John Griffin, a professor at the University of Texas, and Amin Shams, an assistant professor at the Ohio State University.
The plaintiffs also alleged that Potter made repeated public statements specifying the company’s intent to evade banking laws and anti-Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term regulations.
“This is more than sufficient to state fraud claims against Potter,” the plaintiffs' letter added.
“...his arguments that Plaintiffs do not sufficiently allege his role in Defendants’ manipulative scheme are contradicted by allegations that show he was a key member of that scheme, as Chief Strategy Officer for Bitfinex and Tether,” the letter noted.