A class-action lawsuit against Tether and Bitfinex has concluded after the plaintiff decided against appealing the final court decision. The lawsuit, initiated by Shawn Dolifka and Matthew Anderson, centered on accusations that Tether misrepresented its stablecoin, USDT, as being fully backed by U.S. dollars. These claims were ultimately dismissed by the U.S. District Court for the Southern District of New York.
In a significant development leading up to this conclusion, Tether had disclosed in its third-quarter attestation report that an unprecedented 85.7% of its total reserves were in cash or cash equivalents. This disclosure highlighted that a significant amount of Tether's reserves was allocated to U.S. Treasury Bills, amounting to an exposure of $72.6 billion.
The lawsuit's termination marks an end to one of the legal challenges faced by Tether, a company at the forefront of the cryptocurrency market with its widely used stablecoin. The outcome provides some relief to Tether and Bitfinex amidst ongoing scrutiny over the transparency and backing of digital assets tied to traditional currencies.
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