Bitfinex Slaps a Lawsuit on Its Nemesis as the Tether Squabble Gets Ugly

Bitfinex has come out fighting after weeks of being on the backfoot. The bitcoin exchange, which has parried stinging accusations from the anonymous critic Bitfinex’ed, has had enough and called in the high-priced lawyers. Steptoe & Johnson is the company tasked with tracking down anyone perceived to have libeled the Hong Kong-based exchange – and it’s got one particular Twitter account firmly in its sights.

Bitfinex v Bitfinex’ed

It’s now been suggested by Bitfinex – and confirmed by its nemesis – that Bitfinex’ed is facing a lawsuit. Stuart Hoegner, legal counsel for Bitfinex, released a statement saying:Amidst mounting questions as to the solvency of Bitfinex and accusations of wash trading using tethers – tokens pegged against the U.S. dollar – the twittersphere has had a field day. Much of the speculation has been spearheaded by Bitfinex’ed, an account which has been a constant thorn in the side of the world’s largest bitcoin exchange.

To date, every claim made by these bad actors has been patently false and made simply to agitate the cryptocurrency ecosystem. As a result, Bitfinex has decided to assert all of its legal rights and remedies against these agitators and their associates.

This was followed up with a PR blitz in which one of the exchange’s partners posted an op-ed conceding that Bitfinex has been poor at communication. The piece makes comparisons between the cannabis and cryptocurrency industries in terms of the difficulty of obtaining banking arrangements, before taking aim at Bitfinex’ed, stating, perhaps disingenuously:

An anonymous online Twitter user who throws allegations around without ever revealing his or her own identity. As a communications professional myself, I know that whenever someone tosses allegations and attacks behind the veil of anonymity, one has to examine their motives.


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