Cryptocurrencies
Tether Backers Sued Over Market Manipulation
- Class-action claim follows New York attorney general’s action
- Tokens allegedly used to manipulate the value of Bitcoin
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A class-action complaint accuses the companies behind the stablecoin Tether of “propping and popping the largest bubble in history,” leading to disappearance of $265 billion in cryptocurrency wealth.
Filed in the U.S. District Court for the Southern District of New York on Sunday on behalf of a handful of investors, the complaint accuses the issuer of the stablecoin -- a category of tokens that seek to avoid price fluctuations, often through pegs or reserves -- of manipulating Bitcoin prices.