Plaintiff Asks Courts to Preserve BitMEX Emails Held on Twilio; Potential Market Manipulation Lawsuit Evidence

Bitcoin Manipulation Abatement LLC (BMA), the firm that recently filed a lawsuit against BitMEX, is pushing for more action from the court to protect potential evidence.

BMA accused BitMEX of market manipulation and non-licensed operations in the U.S; Its counsel has now asked the court to preserve BitMEX email data held on Twilio, a U.S provider for cloud services.

The filing against BitMEX was initiated in mid-May with BMA targeting its Seychelles registered shell company, HDR Global Trading Ltd. According to the submission, BitMEX used this entity as a fallback in exemption from the U.S market laws.

The complaint highlights that BMA was mocked with an ‘incorporated in Seychelles, come at me bro’ meme upon requesting BitMEX’s operational information.

BitMEX Emails Might Be Incriminating; BMA

In a follow up of the initial filing, BMA published another one on June 9. The plaintiff estimates that around 3,000 email records that could incriminate BitMEX are stored on Twilio, given it is the avenue used for daily communication by the firm.

Pavel Pogodin, the general counsel for BMA, has since emphasized that BitMEX went against the law as Twilio is domiciled in the U.S:

“It was a mistake for them to use the U.S. company for this purpose and claim lack of personal jurisdiction of U.S. and California courts at the same time.”

The recent filing by BMA notes that Twilio has put a temporary deletion hold on BitMEX email records up to June 15. After this, the cloud service provider will evaluate the preservation request, an outcome that might grant BitMEX permission to erase its account records. BMA, therefore, found it prudent to make a move within the few remaining days in a bid to strengthen its case against BitMEX. The filing partly reads:

“to preserve a snapshot of information, including specific user email address data, which is evidence of defendants’ contacts with the forum and evidence of defendants operating an unlicensed money transmission business in the United States.”

Read Original/a>
Author: Edwin Munyui

Bitfinex & Tether Class Lawsuit Revised; Adding Bittrex and Poloniex to Alleged Manipulation

  • Revised lawsuit on Bitfinex’s alleged price manipulation of the market using Tether (USDT) during the 2017 bull run to $19,800 has added two U.S based cryptocurrency exchanges
  • US Based Bittrex Exchange and Justin Sun owned, Poloniex
  • Bitfinex still claiming they are “false allegations”

According to a recently revised class action lawsuit filing to the U.S. Southern District Court of New York, Bittrex and Poloniex are the recent defendant additions to alleged charges on supposedly manipulating the Bitcoin market using unbacked Tether (USDT) stablecoins back. The plaintiffs claim the Bitfinex Inc. and its affiliated companies caused billions of losses to traders from the manipulation.

The filing claims that if BitFinex, Bittrex, and Tether would not have manipulated the market, the sharp rise is seen at the end of 2017 and the successive year-long bloodshed would not have happened at such proportions. Multiple class lawsuits arose from the case claiming BitFinex Inc. and its ring of exchange affiliates enabled the printing of billions of dollars of USDT and artificial pumping of BTC and the altcoin market.

The lawsuits were merged into one last year and have now revised it to include Poloniex and Bittrex – also allegedly involved in the manipulation of markets. The lawsuit states,

“Bittrex and Poloniex accepted these transfers and knowingly allowed Bitfinex and Tether—as owners of the addresses holding the USDT—to sell the debased USDT for crypto-commodities on their exchanges, driving up the crypto-commodity prices.”

According to the original filing, BitFinex and Tether were accused of printing USDT and using the stablecoins to boost the prices of at least $1 trillion USD in different crypto assets. The NY federal court shut down efforts by BitFinex to dismiss the class-action lawsuit in November and the second lawsuit in the US Court for the Western District of Washington was opened a fortnight later.

Two plaintiffs have been dropped from the case, David Leibowitz and Global Trades Solution AG, both of whom were represented in the original filing. The new filing also includes Matthew Script as a new plaintiff alongside Benjamin Leibowitz, Jason Leibowitz, Aaron Leibowitz, and Pinchas Goldshtein.

BitFinex and Tether Denounces the Lawsuit

BitFinex and its sister company, Tether released a statement on June 4, 2020, claiming the lawsuits filed with the U.S District court are “false allegations”. Stuart Hoegner, General Counsel for Bitfinex said the lawsuit claims causation due to a correlation between the USDT demand growth and BTC price surge. Hoegner further said,

“This meritless lawsuit is an insult to the ingenuity of Tether’s customers, as well as the success and innovation of the industry and all who play a role in it.”

Read Original/a>
Author: Lujan Odera

Luno CEO: Bitcoin is Dominated by Speculation, Over 90% of Usage is Driven for Investing

Most people know that there is some degree of manipulation in the crypto market. The major question is generally: how much of it there is? Marcus Swanepoel, the CEO of Luno, believes that it is a lot, way more than actual trading, in fact.

According to his recent interview with CNBC, only 10% of all the Bitcoin holders actually use it for “real” transactions. 90% of the users are actually engaged in speculation instead of healthier market activities. They don’t care about BTC and only want to buy it when prices are low and sell it when they’re high.

To him, 90% of the people in the crypto market are speculators trying to get some money by trading the asset. Only 10% of BTC’s user base would have a real long-term view of the asset.

Swanepoel Is Not Completely Against Cryptos

Despite the bold claims that most crypto trading is actually speculation, Swanepoel seems to acknowledge that the market definitely has some potential as an investment. According to him, it really makes sense for people to invest in cryptos, but they need to measure the risk well.

If they only invest a small portion of their assets, they can reap huge rewards later. If the prices go down, at least they have not lost too much money.

His views are shared by many people in the market such as Anthony Pompliano, the CEO of Morgan Creek Digital, and Nelson Minier from Kraken. They believe that while there is still some discussion on whether Bitcoin is really a “safe haven” asset or not, it does not make any sense to have zero exposure to it, as investing at least 1 or 2% of your money on it is a great idea.

Read Original/a>
Author: Hank Klinger

Planned Sell-Off Causes XRP Prices To Crash By 40% On Beaxy Exchange

The crypto market is prone to manipulation. If you don’t believe it, you can just check the many examples that can be easily found. The latest one was a coordinated sell-off of Ripple’s XRP tokens on the Beaxy Exchange.

This new crypto exchange platform was just launched, but it had to suspend its activities for being targeted by manipulators. According to the reports, soon after the launch, the exchange suffering a massive XRP dump with a lot of people selling the asset at the same time.

In order to deal with this obvious market manipulation situation, Beaxy had no choice but to shut down the platform for a few days. It has been a rough start for the exchange, which was launched back in June. So far, technical issues, manipulation and the lack of infrastructure are getting in the way of the company.

Action was taken very quickly, as the abnormal volumes were pretty easy to spot. The prices tanked pretty fast and now all token wallets are frozen, so the manipulators are unable to pull their funds away from the exchange, which prevented more issues from happening.

Fortunately, the exchange will be able to identify the manipulators soon. The company had a Know Your Customer (KYC) system ready since its launch, so the people who caused the crash can be found. However, the exchange did not determine whether it will take action against the scammers or not.

Ripple, the responsible for XRP tokens, has not commented on the situation at the moment.

Read Original/a>
Author: Bitcoin Exchange Guide News Team