Coinfeeds Daily → Class-Action Lawsuit Against Tether and Bitfinex Dismissed

Class-Action Lawsuit Against Tether and Bitfinex Dismissed

Published: Nov 16, 2023 | Last Updated: Nov 16, 2023
Howard Kane

U.S. Southern District Court of New York dismisses lawsuit, delivering a legal victory for Tether and Bitfinex in a case regarding their reserves. The plaintiff's decision not to appeal brings the legal battle to a conclusive end.

Class-Action Lawsuit Against Tether and Bitfinex Dismissed

In a significant legal victory for cryptocurrency companies Tether and Bitfinex, the U.S. Southern District Court of New York has dismissed a class-action lawsuit that had been brought against them. The lawsuit, which accused the firms of dishonesty regarding their reserves, has reached a conclusive end as the plaintiff decided not to pursue an appeal.

Judge Rejects Motion to Amend Complaint

The dismissal came after the judge presiding over the case denied a motion to amend the class-action lawsuit. The plaintiff, Shawn Dolifka, had alleged that Tether and Bitfinex were not truthful about the backing of the Tether stablecoin (USDT). However, the court found the claims to be insufficient, leading to the denial of the request to amend the complaint.

No Appeal from Plaintiff

Following the judge's decision to deny the motion for leave to amend, the plaintiff elected not to appeal the decision. This move effectively puts an end to the legal battle, with Tether and Bitfinex emerging unscathed from the accusations that had been leveled against them.

Tether and Bitfinex Respond to Dismissal

In response to the dismissal, Tether and Bitfinex issued a statement, labeling the lawsuit as "imprudent" and without merit. They expressed their belief that any further litigation would not be beneficial for the plaintiff or his attorneys. The companies have consistently maintained their innocence and have now been vindicated by the court's dismissal.

Practical Takeaways

The dismissal of the lawsuit against Tether and Bitfinex underscores the complexity and evolving nature of legal challenges in the cryptocurrency space. For investors and participants in the crypto market, this development is a reminder of the importance of staying informed about the legal status of companies and the assets they manage. It also highlights the need for clear communication and transparency from crypto firms to avoid litigation and maintain trust with users.

Enjoyed reading this article? Subscribe for daily market and news updates.
Let me read it first >