Blowing Big Ass Bubbles
Roche Freedman filed a class-action suit. The suit is claiming that the firm behind the stablecoin Tether and its affiliate exchange Bitfinex has been involved in swindling investors, mishandling markets and hiding illicit proceeds, the firm’s founding partner Kyle Roche tweeted on Oct. 7.
In the tweet, Roche accused Tether and Bitfinex of “blowing th biggest bubble in history.”
Filed on Oct. 6, the complaint document states that Bitfinex and Tether essentially performed a “sophisticated scheme” involving “part-fraud, part-pump-and-dump, and part-money laundering.”
They are Printing Money like the US Government
The lawsuit, Roche Freedman argues that Tether’s claim of financing the number of its Tether tokens (USDT) by equal amounts of United States dollars was a BS. Instead, the firm says that Tether “issued unusual amounts of unbacked USDT to manipulate cryptocurrency values, just like how the US Government prints money from thin air.” The document reads:
“Because the market believed the lie that one USDT equaled one U.S. dollar, Bitfinex and Tether had the power to, and did, manipulate the market on an unprecedented scale to profit from boom-and-bust cycles they created.”
Just recently the FED started printing massive amounts of money in the US in what some believe to be the start of a recession.
UPDATE: The NY Fed is planning to inject another $75 billion into the financial system on Friday (tomorrow).
That will be more than $275 billion total in four days this week.
Add in the two recent rate cuts & you could argue that the Fed is fighting the start of a recession…
— Pomp 🌪 (@APompliano) September 19, 2019
Tether and Bitfinex expected the lawsuit
The lawsuit filing comes two days after both Tether and Bitfinex published comments claiming that they had become aware of an unreleased paper “falsely positing that Tether issuances are responsible for manipulating the cryptocurrency market.” Confirming that the paper contained “baseless accusations,” Tether and Bitfinex said that they will vigorously defend themselves if lawyers use the source to launch a lawsuit. They also said that they are prepared to mint more $USDT for any lawyer or judge that drops the case saying “Get at your boy in an email.”