Media: Former Bitfinex Executive Linked to Fraud Schemes

Former chief strategic officer of Bitfinex, Philipp Potter, engaged in “fraudulent actions and other unlawful conduct.” This follows from court documents obtained by Finance Magnates.

\n

According to the class action filed in the United States District Court for the Southern District of New York, Philipp Potter and another Bitfinex employee Giancarlo Devasini, also a defendant, founded Tether Ltd in 2014. Plaintiffs allege that Potter initially concealed his key role in both companies.

\n

Also, the document states that both companies manipulated the price of Bitcoin during the 2017 rally. The plaintiffs’ arguments largely rely on information from the Paradise Papers.

\n

Tether Ltd and Bitfinex: how the alleged conspiracy threatens the cryptocurrency market

\n

\n

Some arguments are based on a research report by John Griffin and Amin Shams from the University of Texas at Austin.

\n

Additionally, the plaintiffs allege that Potter repeatedly publicly stated the intent to evade compliance with financial regulators, including anti-money-laundering policies.

\n

“This is more than enough to bring fraud charges against Potter,” the lawsuit states.

\n

Potter left his post at Bitfinex in the summer of 2018.

\n

As noted, the New York State Supreme Court rejected Bitfinex’s appeal, ordering the state attorney general to hand over all documents he had requested.

\n

Subscribe to ForkLog’s channel on YouTube!