Bitfinex Responds to New Class Action Lawsuit in Washington

Cryptocurrency exchange Bitfinex has been embroiled in one legal spat after another throughout 2019. However, the company remains resolute in its mission to fight them all. The latest on its efforts come in a press release published on November 24, where it responded to a “copycat” lawsuit accusing the exchange and Tether of manipulating the market and making false representations.

Manipulation Allegations are Bogus and Unmerited 

The lawsuit against both companies accuses them of market manipulation and making false statistical representations. While Bitfinex didn’t reveal much information about it, the exchange had initially filed a motion to dismiss the case. In this blog post, however, the company challenges the owners of the suit head-on, blasting the entire case as being baseless and mercenary.

Bitfinex Responds to Mercenary and Baseless Class Action Complaint in Washington State https://t.co/WnJfFXCMGe

— Bitfinex (@bitfinex) November 24, 2019

The announcement was not an effort by Bitfinex to hold back, as the onslaught continued from there. The exchange clarified that the new action suffers from a litany of deficiencies, making unmerited claims that were based on no more than “bogus research.” The company also compared the suit and its merit to the allegations leveled against it by the New York Attorney General (NYAG). The NYAG had accused the exchange and Tether of manipulating investors and concealing $850 in stolen funds. 

“As we predicted last month, mercenary lawyers continue to try to use Bitfinex and Tether to obtain a payday. To be clear, there will be no nuisance settlements or settlements of any kind reached.”

Bitfinex alleged that the lawyers were simply looking to secure a payday from them, and in response to that, promised not to make any settlement attempts going forward. However, the company added that they would contest the claims raised by this suit. It also expressed its ability to overcome its legal woes and rise above those who are attacking “the growth, success, and innovation of the entire digital token ecosystem,” in which it says it is proud to play a “critical role.” 

Legal Troubles Continues

The market manipulation case is just the latest in a long line of legal and social battles that Bitfinex has been drawn into this year alone. Chief among those is the claim from the NYAG that the company had laundered and embezzled funds to cover up an $850 million loss. 

In October, the U.S Attorney’s Office or the Southern District of New York made significant progress related to the case, after it indicted the head of Panama-based payment processor Crypto Capital- a firm which, as Bitfinex stated, helped them to process funds for several years. The resolution of the case is yet to be seen, but from the looks of things, Bitfinex is set to start its 2020 with multiple court dates to look forward to.