Tether Wins Class Action Case, Court Dismisses RICO Claims

The judge in the class-action lawsuit filed in the Southern District of New York against stablecoin issuer Tether and digital asset exchange Bitfinex has granted motions to dismiss several claims in the case.

As per the court documents filed recently in the Southern District of New York, District Judge Katherine Polk Failla has granted motions from Tether’s and Bitfinex’s parent company iFinex to dismiss main assertions in the plaintiffs’ case that the 2 companies manipulated the virtual asset bourses. Undisputedly, Judge Failla granted motions to dissolve 5 out-and-out claims and part of one, while repudiating 6 others.

In a Wednesday blog post, Tether mentioned, “This case is doomed. Even for the remaining claims, the Court’s order raises substantial issues that will ultimately be fatal to the plaintiffs’ case.”

The firm mentioned,

“Litigation will expose this case for what it is: a clumsy attempt at a money grab, which recklessly harms the whole cryptocurrency ecosystem.”

While Bitfinex and Tether settled its case with the Office of the New York Attorney General in the month of February over mismanagement of USDT reserve funds, the civil action with a group of discontented digital asset investors continues. In the former case, Bitfinex and Tether agreed to pay eighteen and a half million dollars for damages to New York in addition to halting service to users in the state.