A common attack against Tether in the crypto ecosystem is that the stablecoin isn’t really backed one-to-one by the U.S. dollar. We might soon get to know if these concerns are substantial, as the matter is now going to court. A new lawsuit against the operators of USDT accuses them of creating the largest bubble in human history, and causing well over a trillion dollars in damages.

Also Read: Banking Giant HSBC Set to Fire 10,000 More Employees

Tether Accused of Fraud and Market Manipulation

A class action lawsuit against the operators of Tether and the Bitfinex exchange was filed on Sunday with the United States District Court for the Southern District of New York. The lawsuit accuses the groups of managing a sophisticated scheme to defraud investors, manipulate markets, and conceal illicit proceeds. It came just a day after the two companies notified users of an imminent legal action which they were trying to frame as a shameless money grab attempt.

Tether Created 'Largest Bubble in Human History' Claims Lawsuit Against Bitfinex

According to the complaint, Bitfinex and Tether commingled their corporate…

Click to continue reading on its source location…

Source: https://thebitcoinnews.com/tether-created-largest-bubble-in-human-history-claims-lawsuit-against-bitfinex/