The lawsuit, initiated in 2019 by Jason Leibowitz, co-founder of LeboBTC, alleges financial wrongdoing related to Bitfinex and Tether, with the plaintiff group seeking compensation of over $1.4 trillion for charges ranging from bank fraud to money laundering.
Paolo Ardoino, who holds the position of Chief Technology Officer at both companies, is expected to testify this week, despite defense requests to delay the deposition until October. This denial by the judge has put the defense team in a difficult position.
The lawsuit has been marked by disputes that Ardoino’s deposition may encompass, including discrepancies noted in transaction records, the company’s lending policies, and Tether’s reserve management.
A recent court order stipulates that Ardoino only needs to address non-controversial topics during the deposition, scheduled for Wednesday (September 13).
This legal battle, which began in 2019, alleges that both companies caused significant harm to the cryptocurrency market. Tether, currently dominating the stablecoin market with a 64% market share and proudly boasting a market capitalization of over $83 billion, has repeatedly denied any wrongdoing.
Concerns about Tether’s reserve-related regulations have arisen in the past, leading to an agreement with the New York Attorney General and subsequent bans on their business operations in New York.