Chief Judge Laura Taylor Swain of the U.S. District Court for the Southern District Of New York has demised a class action lawsuit against Tether, the issuer of the world’s largest stablecoin USDT and Bifinex, its sister company.
According to a blog post on Tether’s official website, the judge issued a comprehensive and incisive 6-page decision that included an order dismissing the class action lawsuit that lacks merit, which was filed by Matthew Anderson and Shawn Dolifka against Tether and Bitfinex companies in its entirety.
Read Also: BitMart Announces Upcoming 50% Discount Sales On XRP. Here’s how to Benefit
As the report further stated, the court correctly held that the plaintiffs’ complaint lacked any plausible allegation of injury because it includes no facts showing that “USDT had a diminished actual value at all.”
The fact that the entirety of the class action suit was dismissed at this very early stage of the proceedings implies that plaintiffs’ allegations were void of any legal merit, Tether stated.
In a tweet after the favorable ruling, Tether spokesperson and CTO Paolo Ardoino wrote:
“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 diminished actual value at all.”
Read Also: Concordium Blockchain Officially Launches Its CCD Token On Bitfinex and BitGlobal
It’s worth noting that the complaint stems from a complaint filed all the way back in 2021. At that time, Shawn Dolifka and Matthew Anderson claimed that a statement that Tether was backed by US Dollar was false.
The complaint read in part:
“Defendants did not maintain the same amount of reserves as Tether tokens in circulation. At times, Defendants had no reserves whatsoever. Further, these reserves did not contain U.S. dollars, as Tether suggested, but were a mix of other assets, such as overcollateralized loans and other undisclosed commercial paper.”
Follow us on Twitter, Facebook, Telegram, and Google News
Bitcoin (BTC) is currently on the brink of a major breakout, with an analyst predicting…
The cryptocurrency market is showing signs of strong upward movement, with several lesser-known digital coins…
The world of cryptocurrency is rapidly evolving, and some digital assets are set to make…
While Ethereum is considered to be amongst the most reliable cryptocurrencies, its recent performance has…
As the year approaches its close, investors are keen to rejuvenate their crypto portfolios after…
As the crypto market continues to grow and evolve, investors and enthusiasts are always on…