©Reuters.
NEW YORK – The controversial class-action lawsuit against cryptocurrency companies and Bitfinex has come to an end without the plaintiffs filing an appeal. The legal battle, which has been ongoing since 2019, centered on accusations of financial misconduct and market manipulation, with allegations that the companies’ actions caused more than $1.4 trillion in damage.
The lawsuit was initially filed by Jason Leibowitz, co-founder and CEO, accusing Tether and its subsidiary Bitfinex, alongside Crypto Capital, of bank fraud and money laundering. However, those allegations were dismissed by Chief U.S. District Court Judge Laura Taylor Swain in early August. On Friday, plaintiff Shawn Dolifka agreed to discontinue his appeal following the dismissal, with his legal representation acknowledging that the allegations were unfounded and choosing not to pursue litigation against Tether.
The ruling follows a 2022 order from Judge Katherine Polk Failla, who forced Tether and Bitfinex to provide financial documents relating to the reserves of USDT, Tether’s digital currency pegged to the US dollar. The order was part of a separate accusation that the companies inflated the market, an allegation Bitfinex called “frivolous.”
In response to the initial lawsuit, Tether published a blog post condemning the complaints as baseless and expressing its stance against what it considers opportunistic litigation. The company called the accusations a “sophisticated scheme” that contributed to what has been described as “the largest bubble in human history.”
The resolution of this case marks an important moment for Tether and Bitfinex, as it clears a cloud of legal uncertainty that has hung over the companies for years. With the plaintiffs having withdrawn their appeal, Tether and Bitfinex can now move forward without this particular legal issue hampering their operations.
This article was generated and translated with the help of AI and reviewed by an editor. For more information, see our T&Cs.