The Chief Judge of the United States District Court for the Southern District of New York has definitively dismissed a class action lawsuit issued in 2021 against Tether, the issuer of USDT, and its partner Bitfinex. Tether and Bitfinex welcomed the decision, emphasizing that they remain focused on delivering on their promises to their customers and community.
Tether wins lawsuit
According to a new press release from Tether, the Chief Judge of the United States District Court for the Southern District of New York has definitively ruled on the class action lawsuit issued in 2021 against the USDT issuer and its partner Bitfinex.
In a 6-page document, the judge dismissed the class action in its entirety, stating that it did not contain “plausible allegations of injury” insofar as it contained no evidence demonstrating that “the USDT had a diminished real value”.
The complaint contained allegations that Tether had misrepresented how USDT was insured, and that the company did not hold at least one reserve dollar for every USDT on the market.
Tether welcomed the decision, through a short message shared on its website:
“The dismissal of the entire class action complaint at this very early stage of the proceedings underscores the fact that the plaintiffs’ claims were devoid of any legal merit. Rest assured that we at Tether and Bitfinex remain focused on keeping our promises and protecting our customers and community. “
Paolo Ardoino, CTO of Tether and Bitfinex, also shared the news on X, adding that it was “a good Friday”:
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
In its latest quarterly report, Tether revealed that it had made $850 million in net profits over the second quarter of the year. As a result, the US company now has over $3.3 billion in excess reserves, according to BDO Italy.
USDT is by far the leading stablecoin on the market, with over $83.7 billion in market capitalization at the time of writing.
