Bittrex, Poloniex Named in Bitcoin Price Manipulation Lawsuit

Another two major cryptocurrency exchanges - Bittrex and Poloniex - have been summoned to the court in connection to their involvement in the Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term price manipulation in the 2017 bull run.

The June 3 filings were made by the same plaintiffs who dragged Bitfinex and Tether to court last October for artificially inflating the price of Bitcoin.

“A lawsuit has been filed against you,” the summon notice read.

Per the lawsuit, Tether issued billions of USDT without backing them with the US dollar and purchased Bitcoin from the spot market, thus pushing the demand of the digital currency.

“Tether issued billions of USDT to itself with no U.S. dollar backing— simply creating the USDT out of thin air,” the updated court filing noted. “Because Bitfinex and Tether were essentially the same, Tether could simply transfer newly issued USDT into its account on Bitfinex without receiving U.S. dollars in Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, as was required from genuine customers.”

Though in the initial filling only Tether and its sister exchange Bitfinex were named, now the plaintiffs added two more exchanges in the updated filings submitted on Wednesday.

“With the willing assistance of Bittrex, Inc. (“Bittrex”) and Poloniex LLC (“Poloniex”), two other crypto-exchanges, Bitfinex and Tether used fraudulently issued USDT to make strategically timed, massive purchases of crypto commodities just when the price of those commodities was falling,” the filing added.

Notably, Pinchas Goldshtein, one of the five plaintiffs, is still trading digital assets and purchased 629 Bitcoin futures contracts between January 16, 2018, and June 3, 2020.

The crypto companies are bombarded with lawsuits

Bitfinex was also facing another class-action lawsuit filed weeks after the first one with similar allegations of market manipulation.

Meanwhile, many other major crypto exchanges are also facing class-action lawsuits for various reasons.

Earlier this year, exchanges like Binance and BitMEX were named at 11 class-action lawsuits filed in the US alleging them for violating federal securities laws and mislead investors into buying unregistered assets.