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

Phil Potter, the Chief Technology Officer of both Bitfinex and the USD-backed stablecoin Tether (USDT) has been ordered to provide deposition in the market manipulation case by a New York state court. The exile on the case, Justice Joel M. Cohen, has given the Bitfinex executive 30 days to comply with the request and to provide documents, including emails, spreadsheets, and other documents reflecting the executive’s involvement in the two companies’ businesses. The case is related to a 2017 investigation by the New York Attorney General, Eric Schneiderman, to determine if the companies engaged in market manipulation. Schneiderman alleged that Bitfinex had misused client funds and that Tether had been used to create an artificial price increase for Bitcoin. Bitfinex has since refuted such allegations, and the case is still ongoing. Potter has already supplied some documents to the court, but his deposition is seen as an important step in the case. In the court order, Justice Cohen warned that Bitfinex should not use Potter’s documents to “manufacture” a defense. Potter also has the right to reject questions that he finds too intrusive. The case is of particular interest to the crypto community as it has long been suggested that the two companies engaged in market manipulation with the issuance of USDT tokens. If these allegations turn out to be true, the implications could be far-reaching.