Key Points:
Paolo Ardoino of Bitfinex and Tether faces deposition in a $1.4 trillion class-action lawsuit. A New York judge denied a delay, putting pressure on the defense. Tether, a major stablecoin player, faces ongoing regulatory scrutiny. Bitfinex and Tether's CTO, Paolo Ardoino, are set to play a crucial role in an ongoing class-action lawsuit against the two companies, according to a recent order by a New York judge.
The lawsuit, initiated in 2019 by Jason Leibowitz, co-founder of LeboBTC, alleges financial misconduct involving Bitfinex and Tether, with the plaintiff class seeking over $1.4 trillion in damages on charges ranging from bank fraud to money laundering.
Paolo Ardoino, who serves as the Chief Technology Officer for both companies, is scheduled to testify this week, despite a request from the defense to postpone his deposition until October. This denial by the judge has left the defense in a time crunch.
The lawsuit has been marked by disputes over the scope of topics that Ardoino's deposition could cover, including alleged discrepancies in trading records, the companies' loan policies, and the management of Tether's reserves.
The recent court order specifies that Ardoino must address only undisputed topics during his deposition, which is set for Wednesday.
This legal battle, which began in 2019, alleges that two companies caused significant damage to the crypto market. Tether, which currently dominates the stablecoin market with a 64% share and boasts a market capitalization of over $83 billion, has repeatedly denied any wrongdoing.
Regulatory concerns regarding Tether's reserves have arisen in the past, leading to a settlement with the New York State Attorney General and a subsequent ban on their business activities in New York.
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