Bitfinex and Tether CTO Paolo Ardoino Faces Deposition in Market Manipulation Case – Here’s the Latest

Bitfinex and Tether’s Chief Technology Officer (CTO), Paolo Ardoino, is set to testify in a class-action lawsuit that has involved both cryptocurrency firms since 2019. 

This lawsuit alleges financial misconduct, with the plaintiff class seeking over $1.4 trillion in damages. 

Tensions have risen as both parties clashed over the scope of Ardoino’s testimony.

This legal battle began in 2019 when it was filed by LeboBTC co-founder Jason Leibowitz. 

The lawsuit accuses Bitfinex and Tether of financial misconduct, including bank fraud and money laundering. 

Tether, however, has consistently denied any wrongdoing.

The latest development in this case is Paolo Ardoino’s deposition, scheduled for this week. 

Initially, Tether and Bitfinex’s legal counsel had requested a delay of Ardoino’s deposition to October, citing issues related to the negotiation over the scope of topics. 

However, this request was denied, leaving the defence with limited preparation time.

One of the primary points of contention in this legal battle has been the topics Ardoino’s deposition could cover. 

These topics include alleged gaps in trading records, the firms’ loan-making policies, and the wallets holding Tether’s reserves. 

The judge’s latest order clarifies that Ardoino must only speak on undisputed topics.

Tether’s Dominance and Regulatory Concerns

Tether is a significant player in the cryptocurrency space, holding a dominant 64% share of the stablecoin market. 

Its current market capitalization stands at a staggering $83.6 billion. 

However, regulatory agencies in the United States have expressed concerns about Tether’s reserves. 

In 2021, Tether and Bitfinex settled an investigation with the New York State Attorney General, which resulted in a ban on their business activities in New York.

Judge Katherine Polk Failla weighed in on the matter as stated in the lawsuit, stating that any lack of preparation on the part of the defendants was “largely of their own doing.” 

She also expressed concerns about the pace of the lawsuit but noted that adding one more topic since August should not significantly burden the defendants.

“The court is skeptical that preparation for this one additional topic materially increases the burden”

she said.

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