Tether Reports Legal Win in Challenge to USDT’s Reserves

Tether, the issuer of the world’s most popular stablecoin – USDT, has posted that it has won a legal victory in the US District Court for the Southern District of New York.

The case stems from a complaint filed all the way back in 2021. At that time, Shawn Dolifka and Matthew Anderson claimed that Tether’s statements that Tether was backed one to one to the US dollar were false. To quote the complaint:

“Defendants did not maintain the same amount of reserves as Tether tokens in circulation. At times, Defendants had no reserves whatsoever. Further, these reserves did not contain U.S. dollars, as Tether suggested, but were a mix of other assets, such as overcollateralized loans and other undisclosed commercial paper.”

Today, Tether reports that Chief Judge Laura Taylor Swain of USDNY has issued a 6-page decision that included an order “dismissing the meritless class action lawsuit filed by Matthew Anderson and Shawn Dolifka against Tether and Bitfinex companies in its entirety.”

According to Tether, the Court determined that the complaint lacked any plausible allegations of injury as there was no evidence showing that “USDT had a diminished actual value.”

The Court correctly held that plaintiffs’ complaint lacked any “plausible allegations of injury” because it includes no facts showing that “USDT had a diminished actual value at all.”

Tether stated:

“Be assured, we at Tether and Bitfinex remain laser-focused on continuing to deliver on our promises and ensure our customers and our community are protected.”

The Plaintiffs had sought to achieve class-action status as well as “damages, compensatory damages, and statutory damages in an amount to be determined by the Court and treble and punitive damages.”

Tether spokesperson and CTO Paolo Ardoino Tweeted (Xed) that it was a good Friday.


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