A US judge has rejected the class action lawsuit filed by Shawn Dolifka against Tether and Bitfinex. Dolifka accused Tether of misleading customers about its stablecoin, USDT, and creating a deceptive scheme. The court dismissal marks a victory for Tether, emphasizing its commitment to transparency.
In a significant development, Chief Judge Laura Taylor Swain of the US District Court dismissed the class action lawsuit brought by Shawn Dolifka against Tether and Bitfinex. Dolifka had accused Tether of deceptive practices related to its stablecoin, USDT, alleging the company misrepresented its reserves.
Joined by Matthew Anderson, Dolifka argued that Tether’s reserves were not backed by US dollars as claimed but comprised overcollateralized loans and undisclosed commercial paper. The lawsuit sought compensatory damages, alleging Tether’s failure to undergo professional audits despite promising transparency.
Tether responded, labeling the claims as “meritless” and a baseless attempt for financial gain. The judge’s decision to deny Dolifka’s motion for leave to amend the suit solidifies Tether’s position.
Despite the legal victory, Tether emphasized its dedication to integrity and vowed not to succumb to opportunistic legal challenges. This dismissal underscores the stability of Tether in the face of legal scrutiny.
