Judge Dismisses Market Manipulation Case Against Bitfinex and Tether
A high-profile class action lawsuit against cryptocurrency firms Tether and Bitfinex was dismissed by Judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York. The judge ruled that the complaint lacked plausible allegations of injury and failed to demonstrate damages resulting from the actions of Tether and Bitfinex.
Key Points:
- The lawsuit accused Tether and Bitfinex of market manipulation through the issuance of unbacked USDT stablecoins.
- Judge Swain wrote that the complaint included no facts showing that USDT had a diminished actual value and lacked any plausible allegations of injury.
- Tether welcomed the dismissal and stated that the claims were “void of any legal merit.”
- The plaintiffs have the option to file a motion to amend their complaint within 21 days to address the issues cited by Judge Swain.
- If no motion is filed, the claims will be dismissed with no further notice due to lack of jurisdiction.
Tether recently released an assurance report showing a reserve increase of $850 million in the second quarter of 2023.
Hot Take:
The dismissal of the market manipulation case against Bitfinex and Tether is a significant victory for the companies. It reinforces their position and reputation in the cryptocurrency community. However, the option for the plaintiffs to amend their complaint leaves a possibility for future legal action. Overall, this ruling provides some clarity and relief for Bitfinex and Tether, but the story may not be over just yet.
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