Conclusion of Lawsuit Against Tether and Bitfinex

Legal Resolution for Tether and Bitfinex

The protracted class-action lawsuit against cryptocurrency firms Tether and Bitfinex has concluded without an appeal from the plaintiffs. Initially filed in 2019, the legal battle revolved around allegations of financial misconduct and market manipulation, claiming over $1.4 trillion in damages.

Dismissal of Allegations

Accusations of bank fraud and money laundering were levied against Tether, Bitfinex, and their affiliate, Crypto Capital, by Jason Leibowitz. However, these claims were dismissed by U.S. District Court Chief Judge Laura Taylor Swain. This dismissal was finalized when plaintiff Shawn Dolifka agreed to halt his appeal, with his legal team acknowledging the lack of substantive evidence.

Previous Court Orders

Before this conclusion, Judge Katherine Polk Failla had ordered Tether and Bitfinex to disclose financial records concerning the USDT reserve backing. This order was linked to separate allegations of market inflation, which Bitfinex deemed "frivolous."

Tether's Response

In reaction to the lawsuit, Tether released a statement dismissing the claims as baseless, labeling them part of a "sophisticated scheme" that fed into what they described as "the biggest bubble in human history."

Significance for the Companies

The conclusion of this case is a pivotal moment for Tether and Bitfinex, removing a significant legal hurdle. With the withdrawal of the appeal, both companies can proceed without the encumbrance of this litigation affecting their operations. This resolution offers a reprieve from the legal uncertainties that have shadowed them for years.