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Tether Receives Request From Prosecutors For Asking Consolidation

Tether (USDT), a cryptocurrency stablecoin issuer, which is currently facing multiple lawsuits, received a request from prosecutors asking for consolidation by combining three lawsuits into one, which Tether has not denied.

On January 17, a Tether statement has been shared through an email, which reads:

“We did not oppose the plaintiffs’ requests to combine these frivolous claims, originally filed, respectively, in October in New York, in November in Washington and in January in New York.”

However, various parties have suspected Tether, alongside related exchange Bitfinex, of foul play numerous times over their years in existence.  

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One of the most recent ordeals on the subject reports that Tether and Bitfinex allegedly caused Bitcoin’s bull run of 2017 by carrying out illegal activities.

As a result, three lawsuits against Tether surfaced, which now may be combined into a single prosecution.

Likewise, Leibowitz, Young, and Faubus, the Legal counsel for the lawsuits, filed a letter with the presiding judge on January 16, requesting a merger of the three disputes.

The letter included that the mentioned lawsuits overlap in multiple areas, sharing similarities that may allow for consolidation.

Tether’s statement added:

“A fourth class action was also filed in New York yesterday, which we expect will be consolidated with the previous three actions. None of these cases present meritorious claims.”

Additionally, Tether claimed that the prosecutors’ research is incorrect, explaining:

“That research deploys preselected data to retrofit a desired narrative and demonstrates a patent misunderstanding of the cryptocurrency market and the demand that drives purchases of Tether.”

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The statement continued:

“Tether will continue to defend the digital token ecosystem and the many contributions of the cryptocurrency community, and will not now or in the future pay any amount to settle plaintiffs’ claims. Tether and its affiliates have never used Tether tokens or issuances to manipulate the cryptocurrency market or token pricing.”

Thus, suspicions against Tether are long-standing, as the company has headlined numerous articles about its allegedly questionable fiat backing over the past several years.




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