The cryptocurrency exchange bitfinex and its subsequent stablecoin tether are once again in a crisis concerning their public relations. They have made moves to notify the users of an imminent lawsuit concerning market manipulation allegations and are trying to frame it as just a money grab attempt.
Bitfinex and tether issued identical statements on Saturday concerning the anticipation of a lawsuit that was based on a study. The two claim to be aware of an unpublished and non-peer-reviewed paper that alleges that USDT issuance is liable for manipulating the crypto-currency market. The USDT operators did not make any specifications as to what the study was talking about. That notwithstanding, a couple of days ago, on Thursday, October 3, financial Media giant Bloomberg made news with a story that involved a researcher claiming that bitcoin gains do correlate with tether issuance.
The token analyst study made discoveries that BTC prices rose as much as 70% on the days that new tether coins are minted. The two companies are now accusing the researchers of using fabled data and faulty methodology in their claims. They are now making statements saying that the study is deliberately tailored to shack them up for money in court.
Part of the statement goes, “We fully expect mercenary lawyers to use this deeply flawed paper to solicit plaintiffs for an opportunistic lawsuit which may have been the true motive of the paper all along. Actually, we will not be surprised if just such a lawsuit will be filed imminently. In advance of any filing, we want to make clear our position that any claims based on these insinuations are meritless, reckless, and a shameless attempt at a money grab. “
Bitfinex and tether insisted that they would dispute the findings and conclusions claimed by the paper and are already gearing up to defend themselves against any legal action. Additionally, they have made moves to try and rally the cryptocurrency world to their cause by claiming that the accusations against them are an attack on the entire digital token community.
Their statement additionally read, “it is irresponsible to suggest that tether or bitfinex enable illicit activity due to the inefficiency, liquidity and wide-scale applicability of tether’s products within the cryptocurrency ecosystem. “
The USDT operators are not new to such accusations and allegations of the manipulation of the cryptocurrency industry and market. In the past decade, many critics have made similar allegations about the issuance of the stablecoin, and its correlation to price rises. This notwithstanding, it remains to be the top Dollar paid digital instrument. Many competitors have been created, but so far none of them has been able to reach the trade adoptions levels of USDT, which is as of current the fourth most valuable token in terms of market cap.