A class action lawsuit filed against cryptocurrency firms Tether and Bitfinex was dismissed Friday by a federal judge in New York. The judge ruled the complaint lacked plausible claims of injury and failed to show that Tether’s stablecoin USDT had diminished in value.
Judge Dismisses Market Manipulation Case Against Bitfinex and Tether
A high-profile class action lawsuit filed against cryptocurrency firms Tether and Bitfinex was dismissed Friday by chief judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York. Judge Swain ruled the complaint lacked plausible allegations of injury and failed to demonstrate damages resulting from the actions of Tether and Bitfinex.
It’s a good Friday.#Tether and @Bitfinex Win Comprehensive Legal Victory as U.S. District Court Dismisses Class Action Lawsuit
The Court correctly held that plaintiffs’ complaint lacked any “plausible allegations of injury” because it includes no facts showing that “USDT had a…
— Paolo Ardoino
(@paoloardoino) August 4, 2023
The lawsuit, originally filed in October 2019, accused Tether and Bitfinex of market manipulation through the issuance of unbacked USDT stablecoins. Tether is the company that issues USDT, which is pegged to the U.S. dollar. Bitfinex is a cryptocurrency exchange that shares common owners and executives with Tether.
In her ruling, Judge Swain wrote that the complaint includes no facts showing that USDT had a diminished actual value at any time and lacks any plausible allegations of injury, according to a blog post published by Tether. She dismissed the case in its entirety.
Tether welcomed the dismissal, saying in a statement that the claims were “void of any legal merit.” The company said it remains focused on fulfilling its commitments to customers and the cryptocurrency community.
According to the memorandum order on Pacer, the plaintiffs can file a motion to amend their complaint within 21 days to address the issues cited by judge Swain. If no motion is filed, the claims will be dismissed with no further notice due to lack of jurisdiction. The news follows Tether’s latest assurance report which showed a reserve increase of $850 million in the second quarter of 2023.
What do you think about the case against Tether and Bitfinex getting dismissed? Share your thoughts and opinions about this subject in the comments section below.
