The operators of the cryptocurrency exchange Bitfinex and the stablecoin Tether are again engaged in public relations crisis management. They have notified users of an imminent lawsuit over market manipulation allegations and are trying to frame it as just a shameless money grab attempt.
Bitfinex Anticipates ‘Mercenary’ Lawsuit
Bitfinex and Tether both issued nearly identical statements on Saturday regarding their anticipation of a “meritless and mercenary” lawsuit based on a “bogus study.” They claim to be aware of an unpublished and non-peer reviewed paper alleging that USDT issuance is responsible for manipulating the cryptocurrency market.
The USDT operators did not specify exactly what study they were talking about. However, just a few days ago on Thursday, October 3, financial media giant Bloomberg published a story about a researcher that claims bitcoin gains correlate with tether issuance. This Tokenanalyst study found that BTC prices rise as much as 70% of the time on days that new tether coins are minted. Read More...