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Tether And iFinex File Motion To Dismiss Market Manipulation Lawsuit

Tether and iFinex file a motion to dismiss the market manipulation lawsuit because the plaintiffs don’t prove that billions of dollars of unbacked stablecoins that enter the market as we are reading further in our Tether cryptocurrency news. The lawyers for Tether and iFinex, the partner company of Bitfinex exchange, filed a motion to dismiss […]

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Tether and iFinex file a motion to dismiss the market manipulation lawsuit because the plaintiffs don’t prove that billions of dollars of unbacked stablecoins that enter the market as we are reading further in our Tether cryptocurrency news.

The lawyers for Tether and iFinex, the partner company of Bitfinex exchange, filed a motion to dismiss the class-action lawsuit accusing them of deceptive and anti-competitive and market manipulative behavior. Claiming that they lost a lot of money as a result so the plaintiffs alleged in complaint back in October that over five years Tether issued about $3 billion worth of unbacked USDT tokens which the company used to purchase cryptocurrencies on the open market to prop the prices up during the market downturns.

new york court
New York Southern District Court (Elbud Shutterstock)

According to the complaint, this caused the total market cap of cryptocurrencies to shoot up to $795 billion back in 2017. The plaintiffs are crypto traders that alleged that they bought cryptocurrencies at an inflated price and incurred more monetary loss. As a class action, the suit represented anyone in the US that could have been injured by the inflated prices. In a supporting memorandum, the defendants’ lawyers argued that the case falls down because of the accusation that Tether printed its USDT stablecoins without any backing and that this claim is based on unfounded allegations rather than the direct knowledge of the matter.

The argued that the plaintiffs have not shown that cryptocurrency prices were artificial at the time in question. This means that the accusations of market manipulation have to be thrown out because the plaintiffs can’t really prove they suffered monetary loss. The allegations of anti-competitive behavior should be thrown out because the class action doesn’t really show how defendants tried to claim the market position by raising the prices as the memorandum reads.

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Tether retakes, xrp, market cap, usdt

iFinex and Tether are battling other cases as well on similar accusations that USDT is not properly backed by the collateralized reserves. This includes the one suit brought by the New York Attorney general’s office back in 2019. Tether has a circulating supply of more than 10 billion USDT which is aimed to maintain the value of $1 each. Its website listed “proof of funds” letter from the  Washington-based law firm FFS with an affirmation that the company held $2,538 billion as of 2018.

The company stated however that USDT is backed “by our reserves which include traditional currency and cash equivalents and from time to time may include other assets and receivables from loans made by Tether to third parties which could include affiliated entities.”

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Source: https://www.dcforecasts.com/tether-news/tether-and-ifinex-file-motion-to-dismiss-market-manipulation-lawsuit/

Blockchain

Craig Wright Sues Bitcoin Developers Over Stolen BTC Worth $5 Billion

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The self-proclaimed Satoshi Nakamoto, Craig Wright, has filed yet another lawsuit within the cryptocurrency industry. This time, he has targeted the developers of BTC, BCH, BSV, and BCH ABC requesting that they retrieve access to BTC stolen from his personal computer worth about $5 billion.

CSW Sues BTC Developers Because he was Hacked

Wright has publicly claimed that he is the person behind the Bitcoin network for years – Satoshi Nakamoto. This narrative, which lacks any conclusive evidence, has been highlighted once more by the latest law firm that will represent him in his most recent lawsuit against representatives of the cryptocurrency space.

Ontier, a UK-based litigation law firm, has published a press release asserting that it has informed the developers of Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), and Bitcoin Cash ABC (BCH ABC) of the lawsuit.

With these “ground-breaking legal proceedings,” the firm acts on behalf of Tulip Trading Limited (TTL) – a Seychelles-based company with a primary beneficial owner – Craig Wright. The nature of the lawsuit is somewhat controversial, to say the least.

“In February 2020, Dr. Wright’s personal computer was hacked by persons unknown and encrypted private keys to two addresses, which hold substantial quantities of Bitcoin belonging to TTL, were stolen. These assets were, and continue to be, owned by TTL. The theft is the subject of an ongoing investigation by the Cyber Crime division of the South East England Regional Organized Crime Unit.”

Consequently, the lawsuit has requested that the developers “enable TTL to regain access to and control of its Bitcoin on the grounds that they owe Bitcoin owners both tortious and fiduciary duties under English law as a result of the high level of power and control they hold over their respective blockchains.”

Per their estimation, the sizeable amount has a value of over £3.5 billion or about $5 billion.

More to Follow?

Paul Ferguson, a Partner at Ontier, commented that Wright, the supposed creator of BTC, has “always intended Bitcoin to operate within existing laws.” Moreover, he believes that the Bitcoin developers have the power and obligation to deploy code to “enable the rightful owner to regain control” of his assets.

Should Wright’s lawsuit succeed, others in a similar position could follow suit, added Ferguson.

Craig Wright is no stranger to initiating lawsuits against crypto industry representatives. In his previous one, his lawyers requested two Bitcoin-related websites to remove the BTC whitepaper, which received quite adverse reactions from the community.

Featured Image Courtesy of TheConversation

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Source: https://cryptopotato.com/craig-wright-sues-bitcoin-developers-over-stolen-btc-worth-5-billion/

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Blockchain

All of the Federal Reserve’s wire and ACH systems are down

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All of the services available through the Federal Reserve’s online portal have been down for more than an hour.

According to the Federal Reserve Bank Services’ website, the bank is experiencing a disruption in its account services, central bank, Check 21, check adjustments, FedACH, FedCash, FedLine Advantage, FedLine Command, FedLine Direct, FedLine Web, Fedwire Funds, Fedwire Securities, and National Settlement — all services typically available — which started at 6:18 PM UTC today. In addition, all the access solutions that the Fed offers, with the exception of FedMail, are also offline.

Washington Post reporter Rachel Leah Siegel reportedly received an alert from the Fed saying its staff were “currently investigating a disruption to multiple services” and would “continue to provide updates as soon as they are available.”

“A Federal Reserve operational error resulted in disruption of service in several business lines,” said Jim Strader from the  Federal Reserve Bank of Richmond. “We are restoring services and are communicating with all Federal Reserve Financial Services customers about the status of operations.”

This story is developing and will be updated.

Source: https://cointelegraph.com/news/all-of-the-federal-reserve-s-wire-and-ach-systems-are-down

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Why it’s critical to monitor Bitcoin miners’ position over the next 2 weeks

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The narrative of a bear-led correction is always around, even during the headiest of bull runs. A similar situation is unraveling at the moment, with many still expecting Bitcoin’s performance to take a more calamitous turn.

At press time, while Bitcoin had recovered to climb north of $50,000, some key on-chain metrics seemed to suggest that selling pressure might not be done yet, especially on the miners’ side.

Bitcoin Miners’ Outflow Multiple, Volumes on the rise

Source: Twitter

According to Glassnode data, Bitcoin Miner Outflow Multiple climbed to touch a monthly high after BTC’s decline on the charts. The aforementioned metric relates to the period of time when the amount of Bitcoin flowing out of miners’ addresses is higher than the historical average.

Alongside the same, Outflow volumes of Bitcoin miners also climbed to a 1-month high with over $4.5 million on a 7-day average.

Now, while at first glance that may sound concerning over the short-term, the fact of the matter is that the long-term perspective is still in the green.

Source: CryptoQuant

The Miners’ Position Index is a good example. When the market was correcting back in mid-January, the MPI had surged to a high of 12.65, underlining extremely high selling pressure from miners (An Index reading of over 2 suggests that a majority of miners are selling). On the contrary, the latest drop in Bitcoin’s price pushed the MPI only up to 3.50, with the same down to 2.56, at press time.

Further, additional data seemed to suggest that small miner outflows may have contributed to high outflow volumes since these entities need to balance out their cash reserves on a consistent basis.

Bitcoin hashrate and difficulty is still relatively high

The relative hashrate for Bitcoin has dropped over the course of February, but it is important to note that over the past 3 days, the relative change is very negligible. In fact, the current hashrate is still well above 2020’s highest rate, a finding that means that miners are still active and possibly profitable, despite corrections being the norm for most of the past 24-36 hours.

Source: blockchain

On the question of mining difficulty, the attached chart seemed to suggest that the difficulty was at an all-time high on 23 February with a hashrate of 21.724t. With a difficulty adjustment imminent on the charts, a minor correction would mean that bear-led corrections would not be dragged forward due to miners’ activity.

That being said, it remains critical to monitor miners’ position over the next couple of weeks.


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Source: https://ambcrypto.com/why-its-critical-to-monitor-bitcoin-miners-position-over-the-next-2-weeks

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