Published: Tue, November 05, 2019
Markets | By Otis Pena

Bitcoin 2017 Surge Caused By Single Entity

Bitcoin 2017 Surge Caused By Single Entity

Now, they have doubled down on their claims and updated their research to assert that the manipulation was not caused by multiple whales working in sync to pump the prices, but it was the job of a single large whale who had the power to move the prices at will, reported Bloomberg. The case alleges that the two companies, and a number of affiliated entities, manipulated the crypto market out of up to $1.4 trillion Dollars by printing unbacked coins.

In 2018, John Griffin, professor at the University of Texas, and Amin Shams, assistant professor at the Ohio State University, published a paper that claimed the Bitcoin astronomical gain in late 2017 was the result of manipulation.

The complaint further mentions that the companies' "liability to the putative class likely surpasses $1.4 trillion USA dollars".

Our results suggest that instead of thousands of investors moving the price of Bitcoin, it's just one large one. "Years from now, people will be astonished to find out investors handed above billions to men and women they didn't know and who confronted tiny oversight".

"If it's not Bitfinex, it's somebody they do business with very frequently", Griffin said.

Bitfinex and Tether have the same parent company, the largest derivative exchange used its Tether reserves to manipulate its yearly losses of over $850 million.

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Tether rejected the claims, with General Counsel Stuart Hoegner arguing in a statement that the paper is "foundationally flawed" because it is based on an insufficient data set. The exchange is owned and operated by the same executives who control Tether.

The research: Griffin and Shams studied Bitcoin and Tether transactions from March 1, 2017, to March 31, 2018. They alleged that a single entity on cryptocurrency exchange Bitfinex might be responsible for the insane uptrend. Griffin and Shams continue to keep the name of the entity in close wraps. "This one large player or entity either exhibited clairvoyant marketplace timing or exerted an incredibly significant selling price impact on Bitcoin that is not noticed in aggregate flows from other lesser traders", it provides.

"This is a transparent attempt to use the semblance of academia for a mercenary money grab", Hoegner said.

The general counsel further noted that "macroeconomic experts and stakeholders" in the cryptocurrency space understand that "the global rise of digital currency that has driven the markets and demand for Tether".

Bitfinex said the study "lacks academic rigor".

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