Tether Plans to File Motion to Dismiss Lawsuit About Crypto Market Manipulation

Tether has revealed that it wants to file a motion to dismiss the lawsuit that alleges it manipulated the cryptocurrency market through a letter of intent.

The class-action lawsuit wants payment for damages of over $1 trillion. It is based on charges made by the office of New York Attorney General in April that USDT was not fully backed 1:1 by U.S. dollars and research written by professors at the University of Texas at Austin claiming that a single account utilized USDT to drive up half the cost of bitcoin’s 2017 boom.

The letter, sent to the U.S. District Court in the Southern District of New York, guarantees that the plaintiffs’ lawsuit disregards a consequent version of that research paper where the authors pulled one of its focal charges – that trading patterns uncover the issuance of unbacked Tethers.

A week ago, in an announcement, Tether said the edited paper is “a watered-down and embarrassing walk-back” of the earlier version. Concerning its reserves, the organization also indicates the Transparency section of their site that displays $4.5 billion in assets, with a $100 million cushion over its liabilities.

In the letter, Tether also guarantees that the plaintiffs couldn’t demonstrate Tether and Bitfinex, the exchange that issues Tethers, were responsible for the exchanges that happened or that the traders really experienced damage to the market crash.

The letter additionally denied accusations that Tether had monopolized control over the stablecoin market, had taken part in racketeering, and committed common law fraud among different claims.

The first lawsuit, filed by Benjamin Leibowitz, David Leibowitz, Aaron Leibowitz, Jason Leibowitz, and Pinchas Goldshtein, was filed by Vel Freedman and Kyle Roche – the legal advisors who won a federal case against Craig Wright. Bitfinex, Tether, Digfinex, and present executives; previous chief strategy officer Philip Potter; and payment processor startup Crypto Capital are identified as defendants in the case.