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Bitfinex Hit With Second Class Action Lawsuit, Threatens Retaliation

Tim Alper
Last updated: | 1 min read

Cryptocurrency exchange Bitfinex has lashed out at what it calls a “mercenary and baseless class action complaint” lodged in Washington State, in the United States – threatening its issue with retaliatory legal action.

Source: iStock/querbeet

The company made its allegations in a statement following what the exchange calls a “copycat” lawsuit brought forward at a Washington district court on Friday last week.

The unspecified lawsuit is the second of its kind brought against Bitfinex, which is operated by iFinex, the company that also operates the USD-pegged Tether (USDT) stablecoin.

The latest legal action is likely linked to widely criticized research published by two academic authors who claim that Tether was used to manipulate Bitcoin prices in 2017 on the Bitfinex platform, leading to a significant BTC rally.

In the statement, Bitfinex claimed, “Mercenary lawyers continue to try to use Bitfinex and Tether to obtain a payday.”

The exchange appears to be hoping that a strongly worded warning will keep other would-be lawsuits at bay, adding,

“There will be no nuisance settlements or settlements of any kind reached. Instead, all claims raised across both actions will be vigorously contested and ultimately disposed of in due course. Once they are, Bitfinex and Tether will fully evaluate their legal options against those bringing and promoting the baseless claims.”

Autumn has been torrid for Bitfnex thus far, with a similar lawsuit lodged in New York last month.

iFinex has also found itself embroiled in a long legal struggle with the New York Attorney General, which earlier this year accused the exchange operator of “mismanaging” customer funds.