Tether Issues Statement on Consolidation of Class Action Lawsuits

Tether, the stablecoin that has endured a good share of challenges, has issued a statement on pending lawsuits targeting the company. According to a release,  the plaintiffs in three class action proceedings against Tether filed a letter with the U.S. District Court for the Southern District of New York requesting that the three actions be consolidated, as well as any actions subsequently filed in or transferred to the court.

Tether said they do not oppose the plaintiffs’ request as these are “frivolous claims,” originally filed, respectively, in October in New York, in November in Washington and in January in New York.

Tether said a fourth class action was also filed in New York yesterday, which they expect to be consolidated with the previous three actions as well. Tether said that none of these cases “present meritorious claims.”

To quote Tether’s statement:

“The research purporting to underpin the plaintiffs’ allegations is deeply flawed. That research deploys preselected data to retrofit a desired narrative and demonstrates a patent misunderstanding of the cryptocurrency market and the demand that drives purchases of Tether. Tether looks forward to putting the true facts before the Court throughout the consolidated proceedings to debunk the fanciful accusations that the plaintiffs and their counsel are peddling in a shameless attempt to line their pockets. Tether will continue to defend the digital token ecosystem and the many contributions of the cryptocurrency community, and will not now or in the future pay any amount to settle plaintiffs’ claims.

Tether and its affiliates have never used Tether tokens or issuances to manipulate the cryptocurrency market or token pricing. All Tether tokens are fully backed by reserves and are issued pursuant to market demand, and not for the purpose of controlling the price of crypto assets. Launched in 2014, Tether was the first blockchain-enabled platform to allow traditional currencies to be tokenized, allowing users to transact with fiat currencies across exchanges without the volatility associated with digital currencies. By introducing a fiat currency gateway to the Bitcoin and Ethereum blockchains, Tether made, and continues to make, a significant contribution to a more connected ecosystem by providing instant global transactions coupled with price stability.”

Tether has been rocked by a series of lawsuits and its apparent affiliation with crypto exchange Bitfinex – a current target of the New York State’s Attorney General’s office.

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