Poloniex and Bittrex added to list of lawsuit. Crypto trading platforms Poloniex and Bittrex have been added to the list of defendants in which Roche Cynulfrik Freedman is the plaintiff.
The law firm is also involved in a class-action case against Tether and Bitfinex for allegedly manipulating the price of bitcoin. Plaintiffs Pinchas Goldshtein, Benjamin Leibowitz, Jason Leibowitz, Matthew Script, and Aaron Leibowitz are suing Ifinex which is the parent company of Tether and Bitfinex.
According to the recent filing against Ifinex, the four firms allegedly created “a sophisticated scheme that coopted cryptocurrency and used it to defraud investors, manipulate markets, and conceal illicit proceeds.” This happened through the use of the crypto exchange Bitfinex and stable coin tether.
Referring to Bitfinex and tether, the lawsuit states that “Part-fraud, part-pump-and-dump, and part-money laundering, the scheme was primarily accomplished through two enterprises,”
The filing also states that “Given the size and regularity of these transfers through a mechanism they created for that exact purpose and their perfect visibility into the transactions, Bittrex and Poloniex knew the manipulative effect of the transactions on their exchanges,”
It added that “For otherwise peripheral exchanges, these large trades of purportedly fiat-backed USDT created an impression of legitimacy and consumer trust, leading to further trades and fees for the two exchanges.”