Last updated on August 8, 2023
On Friday, a federal judge in New York dismissed a class action lawsuit that was filed against cryptocurrency firms Tether and Bitfinex. The judge ruled that the complaint lacked plausible claims of injury and failed to provide evidence that Tether’s stablecoin USDT had diminished in value.
The lawsuit, which was filed in October 2019, accused Tether and Bitfinex of market manipulation through the issuance of unbacked USDT stablecoins. Tether is the company responsible for issuing USDT, which is pegged to the U.S. dollar. Bitfinex, on the other hand, is a cryptocurrency exchange that shares common owners and executives with Tether.
In her ruling, Judge Laura Taylor Swain wrote that the complaint did not present any facts demonstrating that USDT had a diminished actual value at any point, and lacked plausible allegations of injury. As a result, she dismissed the case in its entirety.
Tether welcomed the dismissal, stating that the claims were without any legal merit. The company remains committed to fulfilling its obligations to customers and the cryptocurrency community.
According to the memorandum order on Pacer, the plaintiffs have the option to file a motion to amend their complaint within 21 days in order to address the issues highlighted by Judge Swain. If no motion is filed, the claims will be dismissed without further notice due to lack of jurisdiction.
This development comes after Tether’s recent assurance report, which revealed a reserve increase of $850 million in the second quarter of 2023.
What are your thoughts on the dismissal of the case against Tether and Bitfinex? Share your opinions in the comments section below.
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