A U.S. Court in the Southern District of New York has granted a motion to dismiss some of the major claims against a class-action lawsuit filed against the stablecoin issuing company Tether and <a href="https://www.cryptoknowmics.com/news/bitfinex-launches-regulated-security-token-exchange-in-kazakhstan/">Bitfinex cryptocurrency exchange</a>.
<h2><strong>U.S. Court Dismisses RICO Claims Against iFinex</strong></h2>
In an ongoing case charged against the alleged violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), U.S. judge Katherine Polk Failla has dismissed half of the plaintiffs’ claims against <a href="https://www.cryptoknowmics.com/news/tether-denies-holding-commercial-paper-issued-by-evergrande/">Tether </a>and Bitfinex’s parent company iFinex.

Overall, five complete claims as well as a part of one, while six other claims remain denied as the plaintiff’s case could not bring about how the companies had manipulated the cryptocurrency market.

In a <a href="https://tether.to/ny-court-dismisses-half-of-class-action-plaintiffs-claims-against-tether/" target="_blank" rel="nofollow noopener">blogpost</a>, Tether added that this case appears to be “doomed”, saying:
<blockquote><em>“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.”</em></blockquote>
Judge Failla noted that Tether and Bitfinex investors could not adequately validate the two companies’ monopoly in the stablecoin market.
<h2><strong>iFinex Was Accused of Manipulating the Crypto Market</strong></h2>
In 2019,<a href="https://www.cryptoknowmics.com/news/ifinex-files-subpoena-to-investigate-missing-800-million/"> iFinex</a> was accused of manipulating the cryptocurrency market by issuing unbacked Tether’s USDT stablecoin. The plaintiffs alleged that the company wanted to signal “that there was enormous, organic demand for crypto commodities”, thereby “creating and sustaining a ‘bubble’ in the crypto commodity market.”

Responding to this, Tether and Bitfinex reached for an $18.5 million settlement with the New York Attorney General’s Office. While the case has been settled, the lawsuit with the previous investors of Tether remains.
<blockquote><em>“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,” </em>added Tether.<em>
</em></blockquote>

U.S. Court Dismisses Key Claims in a Class-action Lawsuit Against Tether

A U.S. Court in the Southern District of New York has dismissed some of the major claims against a class-action lawsuit filed against Tether and Bitfinex.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

U.S. Court Dismisses Key Claims in a Class-action Lawsuit Against Tether

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