Bitfinex Market Manipulation Lawsuit Refiled in New York and Joined by Second Case

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An Oct. 10 class-action lawsuit filed against iFinex Inc., the parent company of Bitfinex and Tether, was refiled on Jan. 8 in New York's Southern District.

The original lawsuit alleges that iFinex manipulated the cryptocurrency market in 2017 by issuing unbacked Tether that was then sold for Bitcoin to increase its price.

The original lawsuit by Eric Young and Adam Kurtz was filed in Washington State's Western District and was terminated on Jan. 7 according to court documents obtained by Cointelegraph.

The new, refiled lawsuit was submitted on Jan. 8 to New York's Southern District with the addition of a third plaintiff, David Crystal.

Court documents show that just one day later on Jan. 9, a lawsuit was filed by Bryan Faubus, a self-identified Bitcoin trader.

The case files were submitted to the same Southern District and directly cite the Jan. 8 class action filed by Young.

Text comparison tools show that the two filings are virtually identical, though some parts in Faubus's are different in that they refer to Young's class action.

Cointelegraph reached out to the attorneys listed in both filings for clarification, but had not received a response as of press time.

It is also unclear why the original class action was refiled in New York, though it would make sense given iFinex's New York incorporation.

The New York Attorney General is currently investigating the company for alleged mismanagement of Tether reserve funds.

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