Crypto exchange Bittrex and Tether have driven the 2017 bull run through market manipulation and have requested the issuance of summons to exchanges Bittrex and Poloniex, accoding to a class-action lawsuit filed in October last year.
The plaintiffs behind the lawsuit alleges that crypto exchange giant Bitfinex and its sister company Tether inflated the supply of Tether’s USDT stablecoin without proper US dollar backing to drive up crypto prices during 2017’s all-time high. The lawsuit is on behalf of investors who purchased cryptocurrencies at what they believe are artificially inflated prices.
The plaintiffs have alleged that Tether issued billions of USDT to itself with no US dollar backing and simply creating the USDT out of thin air. The USDT stablecoin was used to buy cryptocurrencies resulting in a spike of the price of digital currencies. The lawsuit states that the price bubble resulted in billions of dollars of damage to innocent crypto commodity purchasers.
The lawsuit claims that a plaintiff suffered economic losses as a result of purchasing 629 Bitcoin futures contracts between January 16, 2018, and June 3, 2020, which shows that plaintiff was making trades the same day the filing was submitted.