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Thursday, June 24, 2021

New Tether manipulation charges. How will this affect Bitcoin?

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Kamal Saini
Kamal S. has been Journalist and Writer for Business, Hardware and Gadgets at Revyuh.com since 2018. He deals with B2b, Funding, Blockchain, Law, IT security, privacy, surveillance, digital self-defense and network policy. As part of his studies of political science, sociology and law, he researched the impact of technology on human coexistence. Email: kamal (at) revyuh (dot) com

Bitfinex executives have notified users of pending lawsuits based on market manipulation allegations. This was a reaction to an article published on October 3rdBloomberg, which says that Tether affects the market through the issuance of tokens. The company called the allegations “spoiled material”:

“We expect this deeply flawed article to be used by opportunists to file lawsuits. Perhaps this is precisely her purpose. Do not be surprised if lawsuits are filed soon. In anticipation of this, we want to clarify our position: any claims based on this article will be regarded as a shameless attempt to extort, ”Bitfinex said.

A published study claims that in 70% of cases, Tether emissions coincided with the growth of Bitcoin. About $ 2 billion in Tether tokens were issued during the year, which could have a significant impact on the market.

The previous conflict between Bitfinex and Tether with the public happened in October 2018. The exchange froze over 600 million USDT during the month. This was taken as evidence that the USDT token was not backed by the dollar in a 1k1 ratio, as it should have been in accordance with the earlier version of white paper. Against this background, there was a sharp drop in the USDT rate by 15%. Bitcoin relative to USDT has grown by more than 20%.

Recall that in March 2019, Tether made changes to white paper. Now, each USDT should be backed up by “reserves that include traditional currency and cash equivalents, as well as other assets and upcoming loan proceeds that were provided to third parties.”

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