Today, Bitfinex advised the U.S. District Court in the Southern District of New York of its intention to file a motion to dismiss the frivolous class action lawsuit filed last month. The motion will allege that many of Plaintiffs' causes of action lack the required legal basis to proceed past the very early stage of the case.
There are several reasons to look at the Plaintiffs' claims with a jaundiced eye, including the following. Plaintiffs' accusations of bitcoin manipulation largely rely on a draft of an unpublished academic paper by John M. Griffin and Amin Shams. Separate and apart from key methodological flaws in the paper, it was recently amended to walk back support for a core allegation of the Plaintiffs' complaint. The complaint also ignores an array of other factors that contributed to the spike in the price of bitcoin in 2017. Furthermore, the complaint claims, without evidence and in defiance of reason, that somehow Tether manipulated a market more than seven hundred times the size of total Tether USDT issuances in circulation between March and December of 2017, something that any sophisticated and rational observer of the digital token ecosystem knows to be ridiculous.
Bitfinex looks forward to putting the true facts before the court at this stage and throughout the proceedings. The Plaintiffs continue to act in a way that undermines the many contributions of thousands of members of the digital token economy. Bitfinex will vigorously contest Plaintiffs claims and relentlessly defend itself, its customers and stakeholders, and the cryptocurrency community.
To view the full text of the pre-motion letter to the court, click here.