This Wednesday, the crypto firms – Bittrex and Poloniex – have been added as defendants to the lawsuit that implicates them as purposefully manipulating the price of crypto assets back in 2016 and 2017, which was initially directed to Tether and Bitfinex.
This particular lawsuit was filed by five US citizens who invested in various cryptos at that specific period, and are all seeking compensations for the damages that the alleged manipulation caused them. The plaintiffs are named as Benjamin Leibowitz, Aaron Leibowitz, Jason Leibowitz, Matthew Script, and Pinchas Goldshtein.
The 5-man party has been pointing out both Tether and Bitfinex regarding various allegations that include fraudulent activities, purposeful deception, and adverse market-manipulation since October of 2019. And now, with the newly filed 156-paged amendment suit, they are adding both Bittrex and Poloniex to the mix. They are continually implicating that the defendants collaborated among one another to execute a master plan to launder and disseminate billions of apparently unsupported USDT stablecoins through the market itself to the detriment of their own consumers.
This alleged grand manipulation of the defendants is seen as the reason why the Bitcoin (BTC) price surprisingly shot up to $20,000 from its modest $800 back in December of 2017. The plaintiffs see this as Tether illegally issuing billions of USDT seemingly out of nowhere, which they then moved to their partner, Bitfinex, and has been utilized to buy, and subsequently inflate the overall price of Bitcoin.
Bittrex and Poloniex, on the other hand, are suspected as serving as the backdoor channels in this elaborate scheme. The plaintiffs claim that the two firms preemptively prepared several wallet addresses that are made with the sole purpose of receiving and then storing substantial USDT transfers from Bitfinex. With that, the firms involved were able to deliberately purchase massive amounts of Bitcoin the moment its value nosedived, according to the plaintiffs.
Bittrex and Poloniex are yet to comment on this latest development.