The post Federal Judge Greenlights Class Action Against Tether and Bitfinex Over Alleged Crypto Market Manipulation appeared on BitcoinEthereumNews.com.

Crime A U.S. federal judge has certified a class action lawsuit against stablecoin issuer Tether and cryptocurrency exchange Bitfinex, clearing the way for thousands of retail investors to pursue claims that the two companies artificially inflated Bitcoin and Ethereum prices nearly a decade ago. Key Takeaways A federal judge has certified a class action lawsuit against Tether and Bitfinex over alleged BTC and ETH price manipulation. Plaintiffs claim unbacked USDT was used to artificially inflate crypto prices during the 2017 bull run. Tether and Bitfinex have previously settled with both the NYAG and CFTC for a combined $61 million. The case now moves to discovery, where the real legal battle begins. U.S. District Judge Katherine Polk Failla approved the class certification motion, splitting plaintiffs into two groups: those who purchased BTC or ETH directly on spot markets, and those who traded cryptocurrency futures contracts. The ruling, which follows a sealed opinion issued February 23, marks a significant procedural win for the plaintiffs and moves the case into the discovery phase — where both sides will be compelled to produce evidence. Tether. The largest financial fraud in history. You’re welcome. pic.twitter.com/Tu8VdGfOk9 — Bitfinex’ed 🔥🐧 Κασσάνδρα 🏺 (@Bitfinexed) March 6, 2026 Both parties have until March 9 to submit proposed redactions for the public version of that opinion. What the Lawsuit Actually Claims At the core of the case is a straightforward but explosive allegation: between 2017 and 2019, Tether issued billions of dollars worth of USDT that was not backed by actual reserves, then funneled those tokens onto exchanges including Bittrex and Poloniex. Plaintiffs argue these funds were deployed in “carefully timed purchases” designed to manufacture artificial demand, prop up prices, and sustain what they describe as a “colossal bubble” — one that ultimately collapsed and wiped out hundreds of billions…

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Filed under: News - @ March 7, 2026 1:17 pm