Paolo Ardoino, Chief Technology Officer (CTO) of both Bitfinex and Tether, is set to testify this week as part of an ongoing class action lawsuit.
Bitfinex and Tether CTO Paolo Ardoino to Testify in Market Manipulation Case
The lawsuit, launched in 2019 by LeboBTC co-founder and CEO Jason Leibowitz, includes allegations of financial misconduct and market manipulation against Bitfinex, Tether, Crypto Capital and their respective executives.
Ardoino's testimony, scheduled for Wednesday, is seen as a crucial stage in the protracted legal battle. The defendants had initially requested a postponement until the beginning of October, arguing that adequate preparations were needed.
They argued that the scope of the issues on which Ardoino would be testified only became clear on September 7, providing limited time for preparation.
This lawsuit claims that Bitfinex and Tether are responsible for over $1.4 trillion in damage to the crypto market.
He accuses them of various financial misconduct, including bank fraud and money laundering. Tether has consistently denied these allegations, emphasizing its commitment to market integrity.
One of Ardoino's key points leading up to his testimony was the variety of topics that could be covered. This included concerns about trading records, credit policies, and specific wallets that hold reserves for Tether.
Plaintiffs argue that understanding the status of these accounts is at the heart of the case.
Stablecoins such as Tether play an important role in the crypto ecosystem by acting as digital assets pegged to the value of traditional currencies.
Notably, Tether claimed to have over $72 billion in US Treasury bonds backing its stablecoin as of the end of July.
However, following regulatory reviews, a settlement was reached with the New York State Attorney General in 2021. This agreement prevented iFinex, the parent company of Tether and Bitfinex, from doing business in New York.
*This is not investment advice.