Did You Own Bitcoin Before The 2018 Crash? This Bitter Group of Crypto Plaintiffs Think You May Be Entitled to $1.4 Trillion in Damages
A group of plaintiffs whose Bitcoins suffered the great crypto crash of 2018, have a rough idea of how much damage was caused ($1.4 trillion) and who exactly was damaged, everyone.
The alleged culprit is Tether, a little understood company that’s supposed to issue fully-backed digital US dollars to make trading in the crypto marketplace easier. Instead, as alluded to in a deBanked May/June issue magazine story, Tether may be the ultimate illicit scheme. The company is under investigation by the New York Attorney General, Department of Justice, and CFTC, but still reigns supreme when it comes to buying and selling Bitcoins.
The plaintiffs, David Leibowitz, Benjamin Leibowitz, Jason Leibowitz, Aaron Leibowitz, and Pinchas Goldshtein, outline in their 95-page lawsuit filed on Monday that Tether is part fraud, part pump-and-dump, and part-money laundering.
Tether’s digital assets were used to buy up billions of dollars worth of other cryptocurrencies, they say, inflating demand and prices.
“As the cryptocurrency market reached a fever pitch, Tether’s mass issuance of USDT (Its digital asset) created the largest bubble in human history. When it burst, over $450 billion of value disappeared in less than a month. The fallout continues to affect the cryptocurrency market, including by causing prices to be lower than they would have been but for the manipulation.”
Plaintiffs define the class as “all persons or entities that held or transacted in cryptocurrencies, including but not limited to USDT, ether, bitcoin, and bitcoin derivatives, in the United States or its territories at any time from October 6, 2014, through the present.”
Tether had apparently been expecting such a lawsuit. Over the weekend it published a statement on its website saying:
“We want to make clear our position that any claims based on these insinuations are meritless, reckless and a shameless attempt at a money grab. Accordingly, Tether will vigorously defend itself in any such action.
These baseless accusations are an attempt to undermine the growth and success of the entire digital token community, of which Tether is a key part. It is an attack on the work and dedication of not just Tether’s stakeholders, but thousands of our colleagues, too.“Last modified: October 8, 2019
Sean Murray is the President and Chief Editor of deBanked and the founder of the Broker Fair Conference. Connect with me on LinkedIn or follow me on twitter. You can view all future deBanked events here.