Bittrex and Poloniex have been embroiled in a major lawsuit alleging that the illegally issued USDT has been responsible for the bull market since 2017.
The plaintiffs behind the class case, in which Bittrex and Tether allegedly orchestrated the bull market since 2017 through market manipulation, have requested the issuance of a summons for the Bittrex and Poloniex exchanges.
The indictment, first filed in October 2019, alleges that the Bitfinex exchange and its sister company Tether inflated the supply of the stable Tether coin without having the dollars needed to support the new coins to push cryptocurrency prices up in 2017 The case is on behalf of investors who have bought digital assets at prices they believe are artificially inflated.
The lawsuit alleges that Tether issued billions of USDT without the dollars needed to support the new coins – that is, they created money out of thin air. These new coins were used to buy crypto assets, which caused prices to make a big spike above their real value, causing a total of billions in damage to people who bought crypto.
The revised court records claim that the Bittrex and Poloniex exchanges were involved in the scheme, being responsible for coordinating large purchase orders for a number of exchanges, to create the illusion that there was fresh liquidity entering the market. The complaint states:
With the willing help of Bittrex, Inc. (“Bittrex”) and Poloniex LLC (“Poloniex”), two other crypto exchanges, Bitfinex and Tether, used improperly issued USDT to make strategic, massive purchases of crypto assets, just as the price of those assets was falling.