US court dismisses class action lawsuit against Bitfinex and Tether

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The court in the Southern District of New York (SDNY) has dismissed a lawsuit against stablecoin publisher Tether and its affiliate Bitfinex.

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

According to Tether, Chief Judge Laura Taylor Swain has issued a decision that includes an order to dismiss the lawsuit.

says Tether,

“The Court rightly held that plaintiffs’ complaint did not contain any ‘plausible allegations of damages’ because it does not contain any facts to show that ‘USDT had any diminished true value at all.’

The fact that the class action complaint was dismissed in its entirety at this very early stage of the proceedings underscores the fact that the plaintiffs’ claims had no legal value whatsoever.

Rest assured, we at Tether and Bitfinex remain laser-focused on delivering on our promises and ensuring our customers and our community are protected.”

Last week, Tether Holdings said its total excess reserves rose about 35% in the second quarter to $3.3 billion.

Continuing Tether’s public commitment to openness, it also reveals an increase in its excess reserves of approximately $850 million, bringing its total excess reserves to approximately $3.3 billion at the end of Q2, bolstering Tether’s stability .”

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