The class-action lawsuit alleges Tether and Bitfinex conspired to manipulate crypto market prices.
Plaintiffs in a years-long class-action lawsuit against Tether and Bitfinex filed an amended complaint accusing the companies of manipulating crypto prices through a deceptive scheme involving USDT, Tether’s dollar-backed stablecoin, according to court documents filed in the Southern District of New York.

The complaint alleges Tether and Bitfinex “executed a sophisticated scheme to fraudulently inflate the price” of cryptocurrencies, including Bitcoin
$BTC 64,047
through “massive, carefully timed purchases to signal to the market that there was enormous demand and thus cause the price of those commodities to spike.”

The companies purportedly financed these purchases with billions of dollars in USDT
#USDT $1.00
which — in contradiction to repeated assurances by Tether — was not, in fact, backed one-to-one by United States dollars. In doing so, the Plaintiffs claim that Tether and Bitfinex violated both the Commodities Exchange Act (CEA) and the Sherman Antitrust Act.
“In reality, Tether issued billions of USDT to itself with no US dollar backing — simply creating the USDT out of thin air,” according to the complaint, which goes on to allege that the deception “ultimately result[ed] in billions of dollars of damage to innocent crypto commodity purchasers.”
This is the third complaint to be filed in this case, which was opened in 2019 and has since faced repeated delays, including the removal of the Plaintiffs’ original legal counsel in 2022. Tether and Bitfinex challenged the Plaintiff’s request to amend the complaint in 2023, calling it a last-ditch effort to revive a failing case.
“The reason for this dramatic change of course is clear: two years of fact discovery — including more than a million pages of document discovery and numerous [...] depositions — have not revealed a single shred of evidence supporting the market manipulation scheme alleged in the [Complaint],” the Defendants argued.
Plaintiffs assert that “[e]xpert analysis shows that Bitfinex and Tether issued unbacked USDT and used that debased USDT to buy large amounts of crypto commodities” in the filing.
#tether $USDC

Cryptocurrency company Tether expects to make a $700 million profit in the March quarter, bringing its total reserves to more than $1 billion, the company’s chief technology officer told CNBC, revealing the latest figures for the first time.

Tether issues the stablecoin USDT which is pegged one-to-one to the US dollar. USDT is backed by real-world assets such as fiat currencies and US Treasuries so it can always be exchanged for US dollars.

Stablecoins are used by traders to enter and exit different cryptocurrencies without the need to convert money back into fiat currency.

Over the years, stablecoin issuers have been criticized for not being transparent enough with the types of assets they hold in reserve to back their digital currencies. Tether holds securities, or short-term unsecured debt issued by companies. But Tether does not disclose the type of company or the geographic location of the company that is the source of the debt.

Tether eventually sold all of its commercial holdings and switched to US Treasuries, which are considered a more stable and reliable asset. The company produces so-called attestations, which are reports created by auditors to prove the company’s reserves and the assets it holds.

The last report released by Tether covering the December quarter showed that the company had more assets than liabilities.

Tether then revealed in February that it made a profit of $700 million in the December quarter. The company’s total assets after deducting liabilities amounted to $960.6 million.

Paolo Ardoino, Tether’s chief technology officer, said that the company expects that excess reserves will increase by $700 million in the current quarter, which has not yet ended. That would bring Tether’s excess reserves to $1.66 billion. And this would be the first time Tether has crossed the $1 billion mark.

#tether #USDT #BTC

All the Information You Need to Stake in Tether USDT
Since Tether’s native token, USDT, is not a proof-of-stake blockchain, it cannot be staked. On a controlled exchange or lending site, you can still get paid for lending USDT, nevertheless. Since Tether’s native token, USDT, is not a proof-of-stake blockchain, it cannot be staked.
On a controlled exchange or lending site, you can still get paid for lending USDT, nevertheless. Because USDT lacks an underlying proof-of-stake blockchain, it is a stablecoin and cannot be staked. On a blockchain, stablecoins stand in for the value of a reserve asset. One USDT is equivalent to one USD Dollar since the USDT stablecoin is correlated with the value of the US dollar.
Stablecoins can be employed in a portfolio as a hedge against the volatility of other cryptocurrencies and as a safe haven. They are also frequently used for financing, DeFi participation, and international remittances. USDT is the most popular stablecoin in the world and is compatible with prominent Proof-of-Stake blockchains including Ethereum, Solana, Cardano, and Avalanche.
Using a centralized exchange or lending platform, you can opt to lend your USDT if you want to generate passive revenue. It’s critical to keep in mind that loan and staking operate quite differently.
Staking is the process of adding assets to a proof-of-stake blockchain in order to provide transaction validation and network security. Over time, you receive benefits in the form of the native coin in exchange. Only proof-of-stake blockchains, like Ethereum, Solana, or Cardano, allow for staking.
Owners of USDT can still earn income by “lending” their holdings, even if they are unable to “stake” their assets. Lending differs greatly from staking in that you are lending out your cryptocurrency assets rather than adding to the PoS network’s security.
Lending your USDT to custodial providers or through a DeFi lending protocol are two ways you may get paid for them. Differentiate between loans that are custodial and those that aren’t.
Lending your cryptocurrency through a centralized company like Coinbase, Kraken, or Binance is known as custodial lending. With non-custodial lending, you maintain custody and control of your own assets as you are the only one with access to your private keys.
Avoid falling for excessive annual percentage rates (APRs): You will often receive an APR for your cryptocurrency loan when you lend it. To draw investors, some lending platforms could advertise extremely high annual percentage rates (APRs), although these rates might be irrational and come with extra risk. Yields on safe USDT loans are often between two and three percent.
Adhere to established DeFi protocols: To increase security, look for protocols with liquid marketplaces and select those that have undergone audits by reliable auditors.
Holders of USDT tokens can add their tokens to liquidity pools on lending platforms, where borrowers with collateral assets can access them. These borrowers borrow money by using the collateral assets they have put up as security. Borrowers provide lenders—token holders—an annual percentage rate (APR) in return for loans, while lenders add their USDT to liquidity pools.
When you lend USDT, you usually give up user custody of your assets to a third party, which might be the borrowers or the platform. Due to the fact that you will no longer be in charge of your assets and are depending on the other party to uphold their end of the bargain, this in and of itself creates a counterparty risk. Protocol security issues also exist: There’s a chance that the Tether protocol and the USDT investment as a whole include undiscovered flaws.
#tether #USDT

Tether, the popular stablecoin, has recently injected $1,000,000,000 into its Tether Treasury. Such injections have historically had an impact on the cryptocurrency market, often leading to growth. In this article, we will explore the implications of Tether's recent printing and its potential influence on market dynamics.

Understanding Tether:

Tether is a stablecoin that is pegged to the value of the US dollar, with each Tether (USDT) token representing one USD. It plays a significant role in the cryptocurrency market as it provides liquidity and acts as a bridge between fiat currencies and digital assets.

The Impact of Tether Printing:

Tether has the ability to issue new tokens by minting them when demand increases. When Tether prints new tokens, it typically signals an influx of liquidity into the market. This injection of funds can have several effects on the cryptocurrency market, including:

1. Increased Trading Volume:

The injection of $1 billion worth of Tether into the market can potentially lead to increased trading volume. Traders often use Tether as a base currency for trading, facilitating liquidity across various cryptocurrency pairs. Higher trading volume can contribute to increased market activity and potentially drive up prices.

2. Market Sentiment and Confidence:

The injection of a substantial amount of Tether into the market can boost market sentiment and confidence. Traders may interpret this as a sign of market support and increased stability. Positive sentiment can attract more participants, leading to a potential growth in the overall market.

3. Price Movements:

Tether injections have been associated with price increases in the past. The additional liquidity provided by Tether can flow into different cryptocurrencies, potentially driving up their prices. However, it is important to note that price movements are influenced by a multitude of factors, and the impact of Tether injections may vary from one market cycle to another.

4. Arbitrage Opportunities:

Tether injections can create arbitrage opportunities in the market. Traders may take advantage of the price discrepancies between exchanges to profit from the increased liquidity. This arbitrage activity can contribute to market efficiency and price convergence across different trading platforms.

Conclusion:

The recent $1 billion Tether injection into the Tether Treasury has the potential to impact the cryptocurrency market. While historical trends have shown that such injections often lead to market growth, it is essential to consider other market factors and conduct thorough analysis before making trading decisions.

#tether #BinanceTournament