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New York-based U.S. District Court Judge Laura Taylor Swain granted a victory to cryptocurrency firms Tether and Bitfinex on Friday by dismissing a high-stakes class action lawsuit against them. The lawsuit, lacking evidence of damages or plausible claims of injury, couldn’t prove a decreased value of Tether’s USDT stablecoin.
Crypto Companies Tether and Bitfinex Emerge Unscathed as Class Action Suit is Dismissed A lawsuit aimed at crypto giants Tether and Bitfinex was turned down by Chief Judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York. The case, initiated in October 2019, accused the companies of manipulating the market via issuing unsupported USDT stablecoins.
Tether, the issuer of the USDT coin tied to the U.S. dollar’s value, and Bitfinex, a well-known cryptocurrency exchange sharing a common leadership team with Tether, found relief in Judge Swain’s ruling. The Judge articulated that the lawsuit didn’t provide substantial evidence demonstrating that the value of USDT diminished at any point, nor did it successfully allege injury.
Following the dismissal, Tether expressed its relief in a blog post, noting the claims were devoid of legal substance. Tether reassured its commitment to its customers and the broader crypto community.
Judge Swain’s memorandum order on Pacer allows the plaintiffs a 21-day window to amend their complaint to address the issues she noted. If the plaintiffs fail to act, the case will be permanently dismissed, ending their pursuit of legal redress due to the court’s lack of jurisdiction.