Plaintiffs File New, Slimmed Down Complaint in Class Action Lawsuit Against Tether

As a researcher, I’ve uncovered new evidence that sheds light on the allegations against Tether and Bitfinex in the Southern District of New York (SDNY). In a recently filed second amended complaint, it is suggested that these entities have been involved in a complex scheme to manipulate cryptocurrency prices.

In this particular case, there have been three complaints lodged so far, all presided over by U.S. District Judge Katherine Polk Failla. The initial complaint was submitted in the year 2019, while an amended version was added to the docket in 2020.

The legal proceedings have encountered numerous setbacks. For instance, the initial lawyers representing the plaintiffs, Roche Freedman, which later became Freedman Norman Friedland, were replaced in 2022 following the emergence of video evidence suggesting that attorney Kyle Roche had filed baseless investor lawsuits on behalf of his clients.

In the most recent filing, the plaintiffs’ lawyers have put forth three primary claims against the defendants in the updated lawsuit. These claims accuse the defendants of breaching the Commodities Exchange Act (CEA) through market manipulation, creating a monopoly, and entering into an agreement that suppresses competition – the last two allegations being infringements of the Sherman Antitrust Act. The original complaint originally included eight causes of action, while this amended filing contains twelve.

The suit revealed records of conversations and depositions from the companies’ personnel, reportedly acknowledging manipulative behavior.

In his deposition, Tether CFO Giancarlo Devasini admitted that providing a significant credit line without sufficient collateral could lead customers to purchase large quantities of Bitcoin using this borrowed funds, consequently causing Bitcoin’s price to surge.

A representative from Tether stated that the allegations in the revised lawsuit, similar to the initial one, hold no validity.

In the end, it’s the real facts and proof that carry weight, not the baseless and misleading claims of the plaintiffs. We are certain that we will emerge victorious in this lawsuit, and that the plaintiffs’ senseless conspiracy theories will be dismissed.

Last year, Tether and Bitfinex’s legal team objected to the plaintiffs’ request to modify their lawsuit for a second time after discovery, arguing it was essentially a new filing. However, Judge Failla authorized the plaintiffs to submit a revised complaint in June.

I, as an analyst, can share that Matthew Script, Benjamin Leibowitz, Jason Leibowitz, and Pinchas Goldshtein, who are based in the United States, serve as the primary complainants in this crypto-related legal dispute. However, it’s essential to note that other civil class action suits have also joined this case with their respective plaintiffs.

Attorneys for the plaintiffs did not respond to CoinDesk’s request for comment.