US District Court Dismisses Lawsuit Against Tether and Bitfinex

In a blog post on Friday, stablecoin issuer Tether confirmed that the US District Court had dismissed the lawsuit against it and crypto exchange Bitfinex. Chief Judge Laura Taylor Swain of the US District Court for the Southern District of New York trashed the allegations against the duo (Tether and Bitfinex), stating they lacked legal merit.

“Today, Chief Judge Laura Taylor Swain of the US District Court for the Southern District Of New York issued a comprehensive and inclusive 6-page decision that included an order dismissing the meritless class action lawsuit filed by Matthew Anderson and Sahwan Dolifka against Tether and Bitfinex companies in its entirety,” Tether stated.

Lawsuit Lacked Fact

According to Tether, the US District Court dismissed the class action lawsuit because it lacked any “plausible allegations of injury” and could not prove that USDT had a diminished actual value.

“The entirety of the class action complaint being dismissed at this very early stage of the proceedings punctuates the fact that plaintiffs’ claims were void of any legal merit,” the stablecoin issuer added.

In 2021, Matthew Anderson and Sahwan Dolifka filed a lawsuit against Tether and Bitfinex on issues around stablecoin, USDT. The class action filing alleged that USDT was not pegged one-to-one to the US dollar as Tether claimed.

The case concerned Bitfinex because the crypto trading platform has the same owner as Tether. Hong Kong-based firm iFinex Inc. owns both the stablecoin issuer and the crypto exchange.

A Good Week

Reacting to the lawsuit, Tether and Bitfinex Chief Technology Officer (CTO), Paolo Ardiono, tweeted that it was a good Friday for both firms. “It’s a good Friday,” he stated.

The stablecoin issuer had a scintillating week; it published a profitable Q2 attestation on Monday, showing an $850 million increase in its excess reserve. Tether now has over $3.3 billion in excess reserves as of the end of the year’s second quarter.