Bittrex and Poloniex join the cause of exchanges to manipulate the Bitcoin market with the support of Tether

Bittrex and Poloniex join the cause of exchanges to manipulate the Bitcoin market with the support of Tether - crypto exchangesThe lawsuit regarding the stablecoin issuer Tether and the ex-accused change Bitfinex that there is a shared plan between the two companies to manipulate the bitcoin market is growing.

The exchanges Bittrex and Poloniex are also called into question

On Wednesday June 3, the cryptocurrency exchanges Bittrex and Poloniex became the latest defendants accused of playing fraudulently with the prices of cryptocurrencies in a class action whose plaintiffs have already been prosecuting Tether and Bitfinex for allegations of fraud, deception and market manipulation since October. 2019.

The update of the 156-page report filed on that date continues to claim that Tether and Bitfinex have orchestrated a great plan to recycle and circulate billions of stablecoins presumably without market support to the detriment of their customers.

The crux in the case of plaintiffs Matthew Script, Benjamin Leibowitz, Jason Leibowitz, Aaron Leibowitz and Pinchas Goldshtein. The plaintiffs also argue that Poloniex and Bittrex were essentially backdoor controlled in that scheme.

What are the dynamics that favored the exchanges following the manipulation of the market

According to the allegations, the exchange pair appears to have set the portfolio addresses "specifically" to receive massive USDT transfers "knowing" that they would be sent by Bitfinex.

"Given the size and regularity of these transfers through a mechanism created for that specific purpose and their perfect visibility in transactions, Bittrex and Poloniex knew the manipulative effect of transactions on their exchanges," the plaintiffs argue.

They point to the USDT inflow patterns as evidence. On February 6, 2018, for example, it was highlighted that Bitfinex transferred allegedly worthless $ 2 million USDT to Poloniex just when bitcoin was hitting a low for the day.

This resulted in a rally in the cryptocurrency market and higher trading volumes. "For the exchanges considered peripheral, these large USDT operations allegedly supported by fiat created an impression of legitimacy and consumer confidence, leading to further exchanges and commissions for the two exchanges," says the cause.

In other words, the two companies are said to have facilitated the coordination of massive purchase orders on several other exchanges such as Bitcoin Pro, which caused the illusion of new liquidity in the markets. The lawsuit also claims that the cabal coordinated the USD's transfer models in response to the news of the day, also as a result of the first report of denunciation against Tether.

Stuart Hoegner, Bitfinex and Tether's internal consultant, called the updated report "unrestricted to the facts or the law" in a statement sent to the media. The plaintiffs "confuse the perceived correlation with causality in an attempt to support false and unbearable theories," he said.

And what do you think of all this? Let us know in the comments below your impressions and which exchanges you use for trading crypto currencies.