Tether, the leading stablecoin issuer, has successfully weathered a legal storm. Chief Judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York has finalized the dismissal of a class-action lawsuit filed against Tether and Bitfinex.
The lawsuit by Shawn Dolifka, accused both crypto firms of deceiving investors with false information about the reserves backing the widely-used USDT stablecoin.
A backdrop for this case
The legal unfolding began in September when Paolo Ardoino, the CTO of Tether, celebrated a court judgment on X. Chief Judge Swain had issued a decisive decision denying Dolifka’s request to amend his class-action complaint. She labelled it as “meritless.”
Judge Swain asserted that Dolifka’s arguments were speculative and had already been rejected. She highlighted a lack of sufficient evidence to support her claims of investor deception.
Fast forward to November, now, Tether officially declared the end of the legal battle with a statement.
Judge Finalizes Dismissal of Meritless Lawsuit Against Tether and Bitfinex, Plaintiff Drops AppealTether on X.
Complainant backs off
Dolifka will not pursue further legal action. He has dropped his appeal rights following dismissal of the lawsuit by Judge Swain’s. Tether and Bitfinex welcomed the final the judgment. The company highlighted that Dolifka’s decision to let go of the appeal was correct .
In their latest statement, Tether expressed a firm stance against what they deemed a “litigation money grab” scheme orchestrated by Dolifka. The statement highlights Tether and Bitfinex’s commitment to resisting such schemes. It signals a readiness to defend against such legal challenges.
As the dust settles on this legal dispute, Tether and Bitfinex appear to emerge unscathed, with the court’s judgment reinforcing their position. The November statement not only concludes the legal chapter but also serves as a robust defense against the allegations, framing Dolifka’s legal pursuit as ill-advised and lacking in substance. Tether and Bitfinex’s proclamation that they will not succumb to opportunistic litigation underscores the resilience and confidence they maintain in the face of legal scrutiny.