editorial
Bitfinex and Tether’s Chief Technical Officer, Paolo Ardoino, will be deposed as part of a class-action lawsuit against the two companies and their executives. Despite Ardoino’s request to delay the deposition until October, a New York judge denied the request and stated that the defendants needed more time to prepare. The lawsuit, filed by LeboBTC co-founder/CEO Jason Leibowitz in 2019, alleges that Bitfinex and Tether are responsible for over $1.4 trillion in damages to the cryptocurrency ecosystem. The defendants, including Crypto Capital, are now accused of financial misconduct, including bank fraud and money laundering.
The depositions have caused disagreements between the two parties, and the plaintiffs plan to investigate alleged inconsistencies in trade records, loan-making processes, and Tether reserves. They aim to determine if the reserves have been mixed with other assets and the current size of Tether’s reserves, which are crucial to the case.
Tether, the leading stablecoin issuer in the cryptocurrency market, has denied all allegations of misconduct in a written statement on its website. Judge Katherine Polk Failla expressed concerns about the pace of the litigation and emphasized the need for Ardoino’s testimony to address relevant issues. She also noted that the defendants’ lack of preparation for the deposition was their own fault.
In another decision, Chief Judge Laura Taylor Swain of the U.S. District Court for the Southern District Of New York denied Shawn Dolifka’s request to amend his class-action complaint against Tether and Bitfinex. The court found that Dolifka’s arguments had already been rejected, and his proposed amended complaint did not rectify the fundamental flaws in his claims. Judgment will be entered against Dolifka in favor of Tether and Bitfinex.
Bitfinex emphasized in a blog post that they will not succumb to “shameless litigation money grabs.” They stated that plaintiffs and attorneys who have attempted to bring similar cases in the past, as well as any future attempts, will receive nothing. Bitfinex and Tether remain focused on fulfilling their promises and protecting their customers and community.
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