BTC

$96313.07

-0.56%

ETH

$3358.328

0.35%

XRP

$2.231

-0.63%

BNB

$667.273

0.98%

News

Tether And Bitfinex Triumph As Judge Dismisses Class Action Lawsuit

August 5, 2023 - Around 2 mins mins to read

Key Points:

  • Judge dismisses class action lawsuit against Tether and Bitfinex, finding lack of credible injury claims.
  • The lawsuit questioned USDT’s value claims but lacked evidence of diminished actual value.
  • Tether sees the dismissal as an affirmation of their transparency and vows to uphold promises.
Chief Judge Laura Taylor Swain of the U.S. District Court for the Southern District Of New York has delivered a significant legal victory for Tether and its sister company Bitfinex by dismissing a class action lawsuit against them.
Tether And Bitfinex Triumph As Judge Dismisses Class Action Lawsuit

The lawsuit, brought forth by Matthew Anderson and Shawn Dolifka, targeted Tether’s claims regarding the backing of its stablecoin, USDT, alleging that these statements were false and misleading.

In a notable turn of events, Judge Swain issued a comprehensive and insightful 6-page decision that dismissed the class action lawsuit. The judge ruled that the plaintiffs’ claims lacked merit and plausible allegations of injury.

According to the court, the complaint failed to present evidence demonstrating that USDT had suffered a diminished actual value. This ruling sheds light on the robustness of Tether’s legal position and underscores the inadequacy of the plaintiffs’ claims.

Tether, in response to the favorable decision, shared its satisfaction through an official blog post. The post highlighted that the dismissal occurred at an early stage of the legal proceedings, emphasizing the absence of legal merit in the plaintiffs’ allegations.

The company’s commitment to its promises and its dedication to safeguarding its user base and the broader community were reaffirmed in the statement.

Paolo Ardoino, Tether’s spokesperson and Chief Technical Officer, took to Twitter to express the company’s contentment with the court’s ruling.

He stressed that the court had correctly recognized the lack of plausible allegations of injury and the absence of evidence supporting the claim that USDT’s value had diminished.

This development showcases the ongoing legal challenges and scrutiny that stablecoin issuers face and highlights the importance of transparency and accurate communication in the cryptocurrency space.

The court’s decision not only reflects Tether and Bitfinex’s legal triumph but also contributes to the evolving legal framework surrounding stablecoins and their representations.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Bitfinex

Laura Taylor Swain

Matthew Anderson

Paolo Ardoino

Shawn Dolifka

Tether

USDT

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Tether And Bitfinex Triumph As Judge Dismisses Class Action Lawsuit

Key Points:

  • Judge dismisses class action lawsuit against Tether and Bitfinex, finding lack of credible injury claims.
  • The lawsuit questioned USDT’s value claims but lacked evidence of diminished actual value.
  • Tether sees the dismissal as an affirmation of their transparency and vows to uphold promises.
Chief Judge Laura Taylor Swain of the U.S. District Court for the Southern District Of New York has delivered a significant legal victory for Tether and its sister company Bitfinex by dismissing a class action lawsuit against them.
Tether And Bitfinex Triumph As Judge Dismisses Class Action Lawsuit

The lawsuit, brought forth by Matthew Anderson and Shawn Dolifka, targeted Tether’s claims regarding the backing of its stablecoin, USDT, alleging that these statements were false and misleading.

In a notable turn of events, Judge Swain issued a comprehensive and insightful 6-page decision that dismissed the class action lawsuit. The judge ruled that the plaintiffs’ claims lacked merit and plausible allegations of injury.

According to the court, the complaint failed to present evidence demonstrating that USDT had suffered a diminished actual value. This ruling sheds light on the robustness of Tether’s legal position and underscores the inadequacy of the plaintiffs’ claims.

Tether, in response to the favorable decision, shared its satisfaction through an official blog post. The post highlighted that the dismissal occurred at an early stage of the legal proceedings, emphasizing the absence of legal merit in the plaintiffs’ allegations.

The company’s commitment to its promises and its dedication to safeguarding its user base and the broader community were reaffirmed in the statement.

Paolo Ardoino, Tether’s spokesperson and Chief Technical Officer, took to Twitter to express the company’s contentment with the court’s ruling.

He stressed that the court had correctly recognized the lack of plausible allegations of injury and the absence of evidence supporting the claim that USDT’s value had diminished.

This development showcases the ongoing legal challenges and scrutiny that stablecoin issuers face and highlights the importance of transparency and accurate communication in the cryptocurrency space.

The court’s decision not only reflects Tether and Bitfinex’s legal triumph but also contributes to the evolving legal framework surrounding stablecoins and their representations.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.