The Electronic Frontier Foundation has filed a lawsuit against Bitfinex, the largest bitcoin exchange in the United States, for allegedly violating the federal securities laws.
The digital currency exchange is a major player in the world of cryptocurrency and one of the most active on the world’s largest trading platform.
The suit was filed in the US District Court for the Eastern District of Virginia.
It alleges that Bitfinexs service to consumers, including “subsidiaries, affiliates, officers, directors, and employees,” is an “inherent and pervasive” violation of the Federal Trade Commission Act of 1934, which regulates “the unfair and deceptive acts and practices of interstate commerce.”
It also alleges that the exchange “engages in an abusive practice” of engaging in market manipulation, fraud, and conspiracy to defraud.
The suit, filed Monday, seeks an injunction barring Bitfinexes service to American consumers and an order that the company must cease its illegal activity.
The company has not responded to the complaint.
Bitfinexes has said in a statement that it intends to fight the suit and “resolutely upholds the principles of freedom of expression and privacy.”