NEW YORK - In a significant development for the cryptocurrency sector, a class action lawsuit against Bitfinex and Tether has been definitively closed today, as plaintiffs decided not to pursue an appeal. The legal challenge, initiated by Shawn Dolifka and Matthew Anderson, was based on allegations that Tether's USDT stablecoin was not fully backed by US dollars as claimed. This decision follows the dismissal of the case by Chief Judge Laura Taylor Swain in August.
Despite past regulatory challenges, including an $18.5 million settlement with the New York Attorney General and a $41 million fine from the Commodity Futures Trading Commission (CFTC) in 2021, Tether has continued to see growth in the circulation of its USDT stablecoin. It has now surpassed the circulation of its main competitor, USDC.
In an effort to bolster confidence among users and regulators, Tether's new CEO Paolo Ardoino has made a forward-looking announcement. Starting in 2024, Tether plans to enhance its transparency by publishing real-time data on its reserves. This move is seen as an attempt to address ongoing concerns about the backing of USDT and provide assurance to the market regarding the stability and reliability of one of the most widely used stablecoins in the world.
The cryptocurrency community is closely watching these developments, as increased transparency from major players like Tether could have significant implications for the industry's relationship with regulators and investors alike.
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