- The class action lawsuit against Tether and Bitfinex has been formally dismissed as the claimant waived their right to appeal
- Anderson and Dolika alleged USDT’s lack of 1:1 backing which damaged holders, but the court ruled there was no injury caused
- Anderson and Dolika choose not to appeal, concluding the case
The class action lawsuit filed against Tether and Bitfinex has been formally dismissed after the claimant waived his right to appeal. Matthew Anderson and Shawn Dolika filed the suit in December 2021, alleging that Tether’s USDT token was not backed 1:1 by reserves which damaged traders, but in August the court ruled that no injury had been caused to holders regardless of the truthfulness or not of the allegation. The case was thrown out but Anderson and Dolika were given leave to appeal, but they have chosen not to, bringing an end to the case.
Tether’s Historical Issues Did Not Injure Holders
Anderson and Dolika filed the suit on behalf of multiple crypto traders, leveraging the New York Attorney General’s ruling the prior February, which stated that USDT tokens lacked full backing during certain periods due to a periodic absence of bank accounts. At the time, Tether called the claim a “shameless money grab.”
The lawsuit claimed that the alleged diminished actual value for USDT harmed traders, but Chief Judge Laura Swain dismissed the case, noting an absence of a substantial factual basis for the plaintiffs to demonstrate any wrongdoing by Tether and Bitfinex.
Anderson and Dolika were given leave to appeal the ruling, but, three months later, they have decided not to, formalizing the verdict. In a blog post revealing the verdict, Tether savaged the claims anew:
Quite unlike Dolifka’s ill-advised decision to file the action in the first place, his decision to forego his appeal rights was the correct decision. His claims were entirely meritless, and no amount of further litigation would have resulted in Dolifka or his attorneys realizing anything monetarily or otherwise.
Ever since the lawsuit was filed, Tether has taken great strides toward increasing its reliance on cash and cash equivalents, which now make up over 85% of its backing.