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Accusation against USDT for lack of 1:1 backing rejected by court, Tether statement: Claim baseless

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Accusation against USDT for lack of 1:1 backing rejected by court, Tether statement: Claim baseless

The stablecoin issuer Tether and the cryptocurrency exchange Bitfinex have successfully fended off a collective lawsuit as the motion by the plaintiffs to amend the complaint was rejected and they have decided not to appeal further.

Accusation: Claim of 1:1 Backing for USDT is False

Plaintiffs Shawn Dolifka and Matthew Anderson allege that Tether's claim of having 1:1 reserve backing for USDT is false.

However, the U.S. Southern District Court of New York dismissed the case in August, with District Judge Laura Taylor Swain rejecting the plaintiffs' motion to file an amended complaint.

Subsequently, the plaintiffs chose not to appeal the judge's decision.

Tether Statement: Baseless Allegations by the Prosecution

Tether stated in a release:

In all respects, this is a final judgment, and the prosecution's decision to drop the appeal was the correct one. Their claims are entirely baseless, and no amount of appeal will result in the prosecution or their lawyers receiving any money or other benefits. As we have repeatedly emphasized, Tether and Bitfinex will never be victims of fund plundering through shameless lawsuits.