Tether Expects Another Lawsuit Based On Market Manipulation

Tether expects another lawsuit according to the website of the platform saying that the research ‘’Mertiless and Mercenary’’ shows how the company manipulated the markets and we are about to read further in the latest news on altcoin.

Tether was under an investigation by the New York Attorney General for more than six months and had a deadline to hand over documents until October 14^th. The controversial platform has been subject to scrutiny for more than a few years and it still continues to print millions of their USD pegged digital coins. in less than two years, the circulating supply of USDT increased more than 10 times and that is one of the reasons why Tether expects another lawsuit.

The study was done by the University of Texas which was published last year, claims that the price of the benchmark cryptocurrency was mostly affected by the issuance of new USDT tokens. Only recently, the research performed by TokenAnalyst.io shows that when new Tether coins are issued, the price of Bitcoin rises as much as 70 percent of the time. Tether claims that the business model of the platform is to receive money from institutional investors and mint an equivalent number of tokens which are later handed over to their clients. However, Tether makes it very clear in their terms of service as you can read on their website, that they will not reimburse USDT for dollars.

The NY State Attorney General in April 2018, launched an investigation for Tether and their parent company iFinex who now owns one of the most popular exchanges Biftinex. The investigation was mostly focused on cover-ups to hide the lost funds and clients altogether. As per the cryptocurrency news, around the same time in April that year, Tether’s attorneys revealed that USDT was only backed by 74 percent by their reserves. For each tether that is in circulation, the company had $0.74 to back I up. Tether still has to produce some documents for the New York Attorney General’s office and on top of that, after many years of operation, the company still fails to deliver an audit on their finances despite the many promises they made.