Tether and Bitfinex avoid facing appeal in class action, Tether claims

Quick Take

  • U.S. Southern District Court of New York has once and for all dismissed a class-action lawsuit against Tether and Bitfinex, the stablecoin issuer said.
  • After the judge denied a motion for leave to amend the class-action, the plaintiff elected not to appeal the decision, according to Tether.

The class-action lawsuit filed against Tether USDT -0.02% and Bitfinex ran its course once and for all after the plaintiff decided against appealing a recent ruling, according to a statement published by the stablecoin issuer.

"Following the order ... of the U.S. District Court for the Southern District of New York denying Shawn Dolifka’s motion for leave to amend his meritless class action complaint filed against Tether and Bitfinex companies, Dolifka elected not to appeal the decision," Tether said in its statement. "[The judge's] dismissal of the lawsuit and judgment in favor of the Tether and Bitfinex companies is now final in all respects."

Dolifka and fellow plaintiff Matthew Anderson had alleged in their lawsuit that Tether's statements regarding its stablecoin, USDT, being backed one-to-one by the U.S. dollar, were false. The court dismissed the case in August.


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Last month, in a third-quarter attestation report, Tether said its cash and cash equivalents accounted for 85.7% of its total reserves, the highest percentage ever. Tether also noted a "vast majority" of those reserves are U.S. T-Bills, which comprised $72.6 billion in both direct and indirect exposure.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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RT Watson is a senior reporter at The Block who covers a wide array of topics including U.S.-based companies, blockchain gaming and NFTs. Formerly covered entertainment at The Wall Street Journal, where he wrote about Disney, Netflix, Warner Bros. and the creator economy while focusing primarily on technological disruption across media. Previous to that he covered corporate, economic and political news in Brazil while at Bloomberg. RT has interviewed a diverse cast of characters including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers and convicted criminals. Holds a master's degree in Digital Sociology.


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