Bittrex and Poloniex Targeted in Class-Action Crypto Manipulation Suit

The plaintiffs behind a class-action alleging that Bittrex and Tether drove the 2017 bull run through market manipulation have requested the issuance of summons to exchanges Bittrex and Poloniex. 

The lawsuit, first filed in October 2019, alleges that veteran cryptocurrency exchange 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 suit is on behalf of investors who purchased crypto assets at what they believe are artificially inflated prices.

The Plaintiffs have requested that the Court award reasonable costs of suit, pre- and post-judgment interest, and reasonable attorneys’ fees.

Bittrex and Poloniex embroiled

The lawsuit claims that Tether “issued billions of USDT to itself with no U.S. dollar backing— simply creating the USDT out of thin air.” The USDT was used to purchase crypto assets causing prices “to spike far above their legitimate value in the largest bubble in human history, and ultimately resulting in billions of dollars of damage to innocent crypto commodity purchasers”.

The amended filing alleges that the altcoin-focused exchanges Bittrex and Poloniex were also in on the scheme, facilitating the coordination of enormous buy orders across multiple exchanges to create the illusion of fresh liquidity flooding into the markets. The complaint states:

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