Has the ongoing litigation involving stablecoin issuer Tether and its associate, Bitfinex, reached a conclusion? The U.S. court in the Southern District of New York (SDNY) has just made a significant decision. The class-action lawsuit against Bitfinex and Tether, instigated by plaintiffs Matthew Anderson and Shawn Dolifka, has been dismissed by the court.
The Allegations and the Court’s Decision
The case hinged on claims that Tether’s stablecoin, USDT, was not backed on a one-to-one ratio with U.S. dollars, despite Tether’s claims to the contrary. However, according to the company, Chief Judge Laura Taylor Swain has issued a ruling that includes the dismissal of the lawsuit. In Tether’s words, the court correctly determined that the plaintiff’s complaint lacked ‘plausible allegations of injury’ due to the absence of any factual evidence suggesting ‘USDT had a diminished actual value at all.’
Impact of the Dismissal
The dismissal of the entire class-action complaint at such an early stage underscores the lack of legal merit in the plaintiffs’ claims. Tether and Bitfinex have expressed their commitment to continue fulfilling their promises and protecting their customers and community.
Tether’s Financial Status
Just last week, Tether Holdings reported a roughly 35% increase in its total excess reserves for the second quarter, amounting to $3.3 billion. This shows an addition of about $850 million to its excess reserves, underlining Tether’s stability.
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