U.S. Judge Katherine Polk Failla has dismissed half of the claims of the class-action case. The group accused Tether of having pumped the market first with newly ‘printed’ USDT coins, which made them responsible for the crash that followed.
The plaintiffs filed their original complaint almost two years ago. So half of the class action has now been rejected and invalidated. Tether and Bitfinex have indicated that they are not prepared to settle with the remaining claims. In their view, these accusations are also “worthless”.
“We are grateful to Judge Failla for her meticulous opinion, which has revealed many shortcomings in the plaintiffs’ claims.”
It’s true: Tether’s supply is entirely in the hands of a company that manages the money supply. Tether claims to be fully covered. For each USDT they have something of value up their sleeve that covers this digital $1.
The group of plaintiffs wanted to see damages of $ 1,000 billion from the two companies. In their eyes, the advance of USDT created a bubble in the market, which eventually collapsed. It was the reason why many investors lost money, they say. But now they get unheard of.
Later in the process, the group also added two other cryptocurrencies in the process. They claimed that Bittrex and Poloniex also played a role. Bitfinex and Tether are finally pulling to the end. A first study from November 2019, almost two years ago, revealed the problem. The group blamed a lone whale, and that would have been Tether.
The parties involved are represented by two lawyers: Vel Friedman and Kyle Roche. These are the same lawyers who won a case against Craig Wright last year at 500,000 BTC.