Exchanges Bittrex and Poloniex were accused of manipulating the bitcoin exchange rate

It is alleged that trading platforms helped fictitious growth of the asset price in 2017, when it set a historical high at $20,000, reports Cointelegraph.

Initially, allegations of manipulation of BTC quotes were received by the Bitfinex exchange and the related company Tether, which produces the usdt stablecoin. The lawsuit against them was filed in October 2019. According to the case file, Tether “printed” unsecured cryptodollars and used them to artificially inflate the price of bitcoin and other cryptocurrencies. This resulted in” billions of dollars of damage ” to users.

Now the claim is completed. The prosecution claims that the bittrex and Poloniex exchanges were also involved in the” pump ” of the bitcoin exchange rate in 2017. They helped Bitfinex and Tether make a coordinated purchase of cryptocurrency during the fall in its price. Thus, the platforms created the illusion of liquidity and high demand.

“Bittrex and Poloniex voluntarily assisted Bitfinex and Tether, which used fraudulently issued USDT to make strategically calculated mass purchases of cryptocurrency just when the price of these assets was falling,” the case file States.

The prosecution clarified that Bittrex and Poloniex worked closely with Tether and knew that each USDT token had to be backed by the US dollar at that time. At the same time, the listing of stablecoin helped the platforms quickly rise in the rating and take a place among the largest exchanges in the crypto industry.

On may 18, BMA LLC filed a lawsuit in the US district court against the BitMEX derivatives exchange and its co-founders, Arthur Hayes, Ben Delo and Samuel reed. The trading platform is accused of manipulating the cryptocurrency market and prices, fraud, money laundering and other offenses.