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A class action lawsuit against and Bitfinex has ended after the plaintiff decided not to appeal the court’s final decision. The lawsuit, filed by Shawn Dolifka and Matthew Anderson, focused on accusations that Tether misrepresented its stablecoin, USDT, as being entirely backed by U.S. dollars. These claims were ultimately dismissed by the United States District Court for the Southern District of New York.
In a significant development that led to this conclusion, Tether revealed in its third quarter attestation report that an unprecedented 85.7% of its total reserves were in cash or cash equivalents. This disclosure highlighted that a significant amount of Tether’s reserves were allocated to US Treasuries, representing an exposure of $72.6 billion.
The dropping of the lawsuits ends one of the legal problems faced by Tether, a company at the forefront of the cryptocurrency market with its widely used stablecoin. The move provides some relief to Tether and Bitfinex amid increased scrutiny over the transparency and collateralization of digital assets tied to traditional currencies.
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