US Judge Dismisses Many of the Claims in a Lawsuit against Tether

The US District Court for the Southern District of New York has dismissed half of the class action plaintiffs’ claims against Tether, the issuing company behind Tether tokens (USDt), and Bitfinex. In addition, according to the press release, Racketeer Influenced and Corrupt Organizations Act (RICO) claims were dismissed by Judge Katherine Polk Failla.

The Court had granted motions to both Tether and Bitfinex’s parent company iFinex to dismiss claims that both firms were allegedly involved in crypto market manipulation.

“Even for the remaining claims, the Court’s order raises substantial issues that will ultimately be fatal to the plaintiffs’ case. With half their case now dismissed, their primary expert debunked, and their lead law firm embroiled in its own internecine war, with its partners and former partners trading allegations of fraud and ethics violations, this case is doomed. This is unsurprising given that plaintiffs’ claims are meritless,” Tether commented in the press release issued through its official website.

‘Deficiencies’ in the Claims

Tether added that Judge Failla exposed ‘many deficiencies’ in the plaintiffs’ claims with the decision taken in this regard. In fact, Judge Failla commented that Tether and Bitfinex investors could not adequately argue the companies’ monopoly across the Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term market that they have been claiming. The complaint filed in October 2019 alleged that iFinex manipulated the crypto market by issuing Tether’s USDt, helping to create a ‘bubble in the crypto commodity market.’

“Bitfinex and Tether look forward to litigating this case and will not settle what remains of the plaintiffs’ baseless claims. Litigation will expose this case for what it is: a clumsy attempt at a money grab, which recklessly harms the whole cryptocurrency ecosystem,” Tether pointed out.

Tether’s adoption keeps spreading in other news, as Dukascopy announced early this month that it had enabled account funding via Tether (USDT) and increased its deposit limits with Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term.