Class Action Lawsuits Against Bitfinex and Tether Seek to Merge Cases

Three separate putative class action lawsuits against Bitfinex and Tether have filed to consolidate their cases in the U.S. District Court for the Southern District of New York. The plaintiffs allege that Bitfinex and Tether manipulated the crypto markets by manipulating the price of bitcoin and bitcoin futures, in violation of federal law.

Plaintiffs in Multiple Lawsuits Against Bitfinex and Tether Seek Consolidation

Plaintiffs in three separate putative class action lawsuits against cryptocurrency exchange Bitfinex and stablecoin issuer Tether have requested the consolidation of their cases, according to a court filing submitted on Thursday, January 12, 2023.

Initiated in the U.S. District Court for the Southern District of New York, the lawsuits brought by plaintiffs David Leibowitz et al., Eric Young et al., and Bryan Faubus et al., allege that the sister companies engaged in market manipulation in the cryptocurrency market.

The filings detail several common allegations, including claims that Bitfinex and Tether manipulated the prices of Bitcoin and Bitcoin futures in violation of federal law. The plaintiffs contend that these actions harmed investors who traded on the affected platforms.

Notably, the defendants, Bitfinex and Tether, have not contested the plaintiffs' proposal for consolidation. In a press release issued on Friday, January 13, 2023, Tether expressed its anticipation of disproving the "fanciful accusations" against them.

"Tether will continue to defend the digital token ecosystem and the contributions of the cryptocurrency community. We will not entertain any settlements with the plaintiffs," the statement asserted.

The consolidation of these lawsuits is significant as it aligns the cases geographically, potentially facilitating a more efficient and coordinated trial process. It also highlights the plaintiffs' unified stance in pursuing their claims against Bitfinex and Tether.

The development follows Eric Young's recent withdrawal and subsequent refiling of his lawsuit in the Southern District of New York. Initially filed in the Western District of Washington, Young's decision to join the other plaintiffs in New York suggests a strategic move to consolidate their efforts.

Furthermore, Tether anticipates that a fourth class action suit filed by Joseph Ebanks on Thursday, January 12, 2023, may also be consolidated with the existing cases.

The court has yet to formally approve the consolidation, but the request by the plaintiffs and the absence of opposition from the defendants indicate a likely path towards consolidation.

The outcome of these lawsuits and the consolidation process will be closely monitored by investors and industry stakeholders, as they have the potential to shape the regulatory landscape for cryptocurrency exchanges and stablecoin issuers.