The issuer of the popular stablecoin USDT has recently published a response to the recently surfaced paper which alleges that a single whale manipulated the market in order to cause a 2017 bull run in the Bitcoin (BTC) price. Tether responds to the paper and refutes the claims that the 2017 bull run was caused by a single whale.
The company which is known to stand behind the dollar-backed stablecoin came out with an official response published on its website on November 7. The announcement was also echoed by the cryptocurrency exchange and sister company Bitfinex.
In the Tether news, we can see how Tether responds to the paper – and how it also denies the findings of the coming paper. The company even accused the authors including John M. Griffin and Amin Sharms of unethical motivations. It said:
“To obtain publication, Griffin and Shams have released a weakened yet equally flawed version of their prior article. The revised paper is a watered-down and embarrassing walk-back of its predecessor.”
Even though the paper about the 2017 bull run and how it was caused by a single whale has yet to be published, the key findings surfaced via Bloomberg on November 4 and showed that it will appear in the peer-reviewed Journal of Finance.
According to the findings by Griffin and Shams, an unknown party was using Tether’s stablecoin USDT and the sister exchange Bitfinex allegedly manipulated the market into the bull run at the end of 2017 – seeing Bitcoin reach an all-time high of over $20,000 before suffering a crash which led to the onset of the crypto winter.
At the time, reports from Wall Street Journal suggested that the paper strongly implies that the single large whale in question was Bitfinex itself. “If it’s not Bitfinex,” Griffin told the journal, “it’s somebody they do business with very frequently.”
Now that Tether responds to the paper too, it is more than clear that big players don’t want false accusations about any previous bull runs. However, Tether and Bitfinex are not that good in the eyes of the law too – there was a class-action lawsuit against them filed by a New York law firm and accusing the companies of using USDT to manipulate the markets.
Tether Will Support Peter McCormack In A Craig Wright Lawsuit
“Wright has had myriad opportunities to prove that he is Satoshi and has not definitively done so.”As previously explained in April, Bitcoin SV proponent and creator Craig Wright filed a libel claim against Peter McCormack over him accusing Wright of fraud and claimed falsely to be Satoshi Nakamoto the self-proclaimed creator of Bitcoin. The move by the legal team of Craig Wright also resulted in Binance delisting in Bitcoin Satoshi Vision in April alongside the other exchanges including Kraken and Shapeshift.Hoegner said that Tether stands behind McCormack in his lawsuit against Wright and he suggests that the support provided goes further beyond just words though the lawyer did not clarify what kind exactly of support will the podcaster receive:
“Litigation can be drawn-out and expensive, but we are committed to the long game. We admire Peter’s conviction and are humbled to support his defense against what we see as frivolous and vexatious litigation.”Wright is also involved in many other legal disputes and in some as a defendant in another legal case filed by the ex-business partner David Kleinman. As we reported earlier, the court documents filed on November 1, reveal that Wright could not finance a 500,000 BTC settlement in the case.Tether will support McCormack in his legal proceedings despite the inability of Wright to pay the previous settlement cases. Since the settlement has now been broken, the case will be taken back to court. At the end of August this year, Wright was held in contempt of court because he didn’t disclose the complete list of bitcoin addresses. He has holdings that amount to more than 1.1 million bitcoins. Back then, he claimed that the funds were inaccessible because they were heavily encrypted as well as because of the death of his former business partner, David Kleiman.
Stablecoin Tether (USDT) Gains Popularity As Payments Method
“Merchants used to accept Bitcoin, Ethereum, Ripple and convert it into Tether in order to hedge against the volatility. Now we are seeing the payments just being done directly in Tether.”Also, Tether received some wide adoption among the different types of merchants who have difficulty getting credit-card processing services or who are mainly forced to pay high credit card processing fees. In late September, Tether minted about 300 million USDT as a part of the swap from the Omni protocol to the more popular Ethereum blockchain. However, no token burn on the Omni blockchain took place at that time.Back in July, Tether accidentally minted and later burned 5 billion USDT tokens. Last month, on the other hand, Tether announced the launch of a new stablecoin tied to the offshore Chinese yuan dubbed CNHT. The latest currency that joined Tether’s other stablecoins that backed by the US dollar and the euro (EUR).As a part of the further expansion of the stablecoin, Tether plans to release another version of the stablecoin backed by a basket of commodities such as crude oil, rubber, and gold. Tether’s price is also expected to increase in the upcoming period and we are going to keep tracking the stablecoin in our news.
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