InsideBitcoins.com

Bitfinex And Tether Facing Possible Allegations Of Market Manipulation

US Justice Department Goes after Bitfinex’s Payment Processor

Bitfinex has been involved in a battle with American regulators over their use of the stablecoin to cover losses made by the exchange.

The issue is still before the courts and a verdict is likely to be reached in 2020.

While this issue is still before the courts, the operators of Bitfinex and Tether are once again facing controversy over their business practices.

The two firms have issued out similar statements which hint at the possibility of them facing another lawsuit. The companies may be facing allegations of market manipulation, and they have said that these accusations have come from an attempt by the accusers to extort them.

They said that the accusations have come from a bogus study that has not been published, but alleges that USDT issuance is directly responsible for the manipulation of the cryptocurrency markets.

Tether issuance in tandem with Bitcoin gains points to possible market manipulation

The two companies behind Bitfinex and Tether issued statements in which they make reference to this study, but they do not specify which study it is.

There have been reports that there are researchers that have claimed to uncover a pattern between the issuance of Tether and the gains made by Bitcoin on the crypto markets.

According to the data from Tokenanalyst, Bitcoin’s prices gain up to 70% whenever new Tether coins are released.

Bitfinex and Tether say that the researchers referred to in these reports do not present an accurate interpretation of the facts at hand.

They claim that the researchers pick the data that suits their agenda and use the faulty methodology in a bid to create a false narrative against the two companies.

These false accusations would be a result of an attempt to make monetary gains when the matter appears before the courts.

Ready for a legal battle

The two companies have made it clear that they are ready to engage in any legal battle that could come as a result of the study.

They said that the claims made in the study are false, and they are prepared to defend themselves against those claims.

The companies have described the allegations made in the study as an attack on the cryptocurrency industry as a whole and have asked other players in the industry to back them in this fight.

These latest allegations are not the first time that the two companies are facing allegations of market manipulation.

The stablecoin is a source of controversy, and this becomes the latest in a string of cases that the two firms have had to face.

Despite the issues faced by Bitfinex and Tether, the USDT stablecoin remains a leader in its class, and none of its competitors have succeeded in reaching the adoption levels which have been attained by Tether’s coin.

Due to the adoption levels that USDT has been able to achieve, it has become the fourth most valuable digital asset by market cap.

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      A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.