NY Court Dismisses Half of Class Action Plaintiffs’ Claims Against Tether

September 29, 2021

Yesterday, Judge Katherine Polk Failla of the U.S. District Court for the Southern District of New York issued a 127-page opinion and order dismissing half of the class action plaintiffs’ claims against Tether and Bitfinex, including all of their RICO claims. Plaintiffs filed their original complaint almost two years ago and the case is now in shambles. Even for the remaining claims, the Court’s order raises substantial issues that will ultimately be fatal to the plaintiffs’ case. With half their case now dismissed, their primary expert debunked, and their lead law firm embroiled in its own internecine war—with its partners and former partners trading allegations of fraud and ethics violations—this case is doomed. This is unsurprising given that plaintiffs’ claims are meritless.

Bitfinex and Tether look forward to litigating this case and won’t settle what remains of the plaintiffs’ baseless claims. Litigation will expose this case for what it is: a clumsy attempt at a money grab, which recklessly harms the whole cryptocurrency ecosystem.

We are grateful to Judge Failla for her meticulous opinion, which exposed many deficiencies in the plaintiffs’ claims.