Bitfinex hires law firm to investigate suing Bitfinexed -

[CrunkLord420]

Bitfinex is looking into suing a pseudoanonymous individual who has been a vocal critic of Bitfinex+USDT (which are associated via a parent company): https://www.coindesk.com/bitfinex-vs-bitfinexed-exchange-hires-law-firm-challenge-critics/

I think this is a bad move for Bitfinex, they're legitimizing the rumors over USDT being on fractional reserve and insider wash trading. They've yet to release their hacking report from over a year ago and claim to be waiting on an audit of their USD reserves. Meanwhile they hired a PR firm to insert puff pieces into cryptonewsblogs and sue an anonymous critic.

Paging @AnOminous for legal opinion on the idea of suing Bitfinexed over "market manipulation" via his twitter accusations.

 

[AnOminous]

Hope he's using a VPN or tor or both. Something like a crooked Bitcoin exchange could probably blow a lot of money on a frivolous lawsuit. And that's assuming it's frivolous. If the guy is making false accusations, he could end up in trouble.

Either way, they're going to end up more criticized and damage their brand. I certainly wouldn't put any money in some crooked looking operation with rumors swirling about it that doesn't answer them with facts but instead goes on a litigation rampage. It looks like what someone with something to hide would do.