Many allegations of plaintiffs were dismissed by the district court judge in the hearing on Tuesday.
In October 2019, a case was filed against Bitfinex that the exchange tried to manipulate the market by issuing unbacked Tether. After that long time, the case is going on and it seems that case is going in favour of Bitfinex & Tether.
In Tuesday’s hearing, Southern District of New York, District Judge Katherine Polk Failla dismissed a total of 5 allegations against the iFinex ( company behind Bitfinex exchange). So the District judge granted a motion to dismiss many of the claims in the case.
But here we should not see Bitfinex & Tether at final win Because there are around 6 allegations, which are under consideration and the hearing decision is not finalized yet.
Judge clearly said that she will not allow investors (plaintiffs) to bring claims against these firms ( Tether & Bitfinex) under the Racketeer Influenced and Corrupt Organizations Act.
Yesterday on 29 September, Tether stated on this case through a blog and said that this case will surely end and the remaining claims will also be dismissed soon.
“Litigation will expose this case for what it is: a clumsy attempt at a money grab, which recklessly harms the whole cryptocurrency ecosystem.”
Here it is worth to note that Bitfinex & Tether tried to settle the case with a total $18.5million & stopping the service for that particular reason but the civil action with a group of aggrieved crypto investors continues.