Bitfinex and Tether Secure Legal Victory as US Court Throws Out Class Action Lawsuit

The Southern District of New York (SDNY) court has dismissed a lawsuit against stablecoin issuer Tether and its affiliate Bitfinex. 

The lawsuit, filed by Matthew Anderson and Shawn Dolifka, alleged that Tether’s USDT stablecoin lacked a one-to-one backing with US dollars, contrary to the company’s claims. Chief Judge Laura Taylor Swain of the court issued an order dismissing the suit, stating that the complaint lacked plausible allegations of injury and failed to demonstrate any diminished value of USDT. Tether emphasized their commitment to delivering on promises and protecting customers and the community. Tether Holdings also reported a 35% increase in total excess reserves to $3.3 billion in the second quarter, reinforcing the stability of the stablecoin.

Clever Robot News Desk 7^th August 2023