Tether’s Defense: A Clear Denial
Tether, the widely-used stablecoin, has taken a firm stance against allegations that it manipulated Bitcoin’s price using its USDT currency. In a searing statement released by the company, iFinex, the firm behind Tether, labeled these claims as “reckless and false.” According to their representatives, the accusations don’t just miss the mark but reflect a fundamental misunderstanding of cryptocurrency market structures.
The History of Accusations
The doubts surrounding Tether are nothing new. Most recently, these claims have been energized by John M. Griffin and Amin Shams’ academic work titled “Is Bitcoin Really Un-tethered?”, published in June 2018. The paper suggested that Tether was pivotal in influencing Bitcoin and other cryptocurrency prices amid the roaring 2017 market surge. Tether’s general counsel, Stuart Hoegner, took aim at this research, labeling it as “foundationally flawed,” likening the ongoing lawsuits to a shameless land grab for cash.
The Legal Tussle: Who Gets to Sue?
Complications escalated in the courtroom as law firms vied for the title of lead counsel in the ongoing class-action lawsuit against Tether. Roche Cyrulnik Freedman LLP has nabbed the mantle after fierce competition among various legal entities. This legal showdown caught the eyes of many in the cryptocurrency community, including Bitcoin influencer Andreas Antonopoulos, who threw his support behind one of the rivals.
The Tether Perspective
In what seems like a heavyweight fight, Tether is clearly not taking a backseat. Hoegner remarked on the competitive nature of the lawsuit, asserting that various legal teams are “poking huge holes” in each other’s theories. He emphasized that the ultimate outcome of the case rests not on who leads the charge but on the “defective research” that sparked this mess in the first place. He cheekily noted that the authors of the paper admit they lack crucial data to substantiate their claims.
What’s Next for Tether?
As the courtroom drama unfolds and more details are revealed, Tether is gearing up for a protracted battle. With regulators, academics, and enthusiasts closely watching, the stakes have never been higher. Will this legal dispute shine a light on the murky waters of cryptocurrency pricing, or is it just another episode in the saga of blockchain? Grab your popcorn, because at this rate, it’s going to be an interesting ride!
