Specifically, Roche Freedman has submitted a class-action complaint, with allegations accusing stablecoin firm Tether, together with its affiliate partner Bitfinex, of conducting fraudulent activities against investors, manipulating the crypto market, as well as hiding illegal money.
The accusations, delivered via Twitter on October 7th by Roche Freedman founding associate Kyle Roche, claiming that Tether and Bitfinex are making the “largest bubble in history.”.
Previously submitted on October 6th, the complaint detailed the accusations, stating that Bitfinex and Tether have managed to establish a “sophisticated scheme”, which includes “part-fraud, part-pump-and-dump, and part-money laundering.”
Roche Freedman believed that the claims made by Tether, regarding the the sum of its Tether tokens can be equally backed by the equivalent in US dollars, are false, and instead “issued extraordinary amounts of unbacked USDT to manipulate cryptocurrency prices.”
“Because the market believed the lie that one USDT equalled one U.S. dollar, Bitfinex and Tether had the power to, and did, manipulate the market on an unprecedented scale to profit from boom-and-bust cycles they created.”