Laura Swain dismisses class action lawsuit against Tether and Bitfinex
Laura Swain, the Chief Judge of the U.S. District Court for the Southern District Of New York, has dismissed a class action lawsuit against Tether and Bitfinex brought on by plaintiffs who alleged false advertising of Tether’s USDT stablecoin.
- The ruling is a significant win for Tether and Bitfinex.
- The court found the lawsuit lacked merit.
- Tether stated that the dismissal of the entire lawsuit at an early stage showed the allegations were devoid of any merit.
- Tether and Bitfinex CTO, Paolo Ardoino, expressed satisfaction with the ruling.
- Prominent Bitcoin lawyer Stuart Hoegner applauded Tether’s efforts and broke down the court ruling.
Court gives reasons for dismissing the lawsuit
The court stated that the plaintiffs had not provided sufficient facts or mentioned the buying or selling price of USDT. It also noted that market data showed USDT maintained its peg with the USD at $1 and there was no evidence of USDT losing its value.
The complaint alleges false statements about Tether’s reserves
The complaint claimed that Tether’s statement of a 1:1 peg with the USD was false and that the reserves did not contain USD as advertised. It alleged that the reserves were a mix of assets including overcollateralized loans and undisclosed commercial paper.
Hot Take
This ruling is a significant victory for Tether and Bitfinex, as it dismisses the allegations of false advertising and lack of reserves. It reinforces the credibility of Tether’s USDT stablecoin and provides legal validation for its operations.
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