US Court Dismisses Class Action Lawsuit Against Bitfinex and Tether

The Southern District of New York (SDNY) court has dismissed a lawsuit aimed at stablecoin issuer Tether and its affiliated company Bitfinex.

The lawsuit, filed by Matthew Anderson and Shawn Dolifka, was centered around allegations that Tether’s stablecoin USDT was not backed one-to-one with US dollars, contrary to the firm’s assertions.

According to Tether, Chief Judge Laura Taylor Swain has issued a decision that included an order dismissing the suit.

Says Tether,

“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.’

The entirety of the class action complaint being dismissed at this very early stage of the proceedings punctuate the fact that plaintiffs’ claims were void of any legal merit.

Be assured, we at Tether and Bitfinex remain laser-focused on continuing to deliver on our promises and ensure our customers and our community are protected.”

Last week, Tether Holdings said that its total excess reserves increased by approximately 35% to $3.3 billion in the second quarter.

“In a continuation of Tether’s public commitment towards openness, it also reveals an increase in its excess reserves of about $850 million, bringing its total excess reserves to approximately $3.3 billion at the end of Q2, reinforcing the stability of Tether.”

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