U.S. district judge issues motions to dismiss RICO claims against Tether

District Judge Katherine Polk Failla, who leads the class action lawsuit against Tether and its sister company Bitfinex, has moved to dismiss most of the lawsuits in the case. A report revealed that news on Sept. 29, which found that Tether and IFinex, Bitfinex’s parent company, had previously filed motions to deny allegations of manipulation of the crypto market. Judge Failla has reportedly granted motions to dismiss five full claims and part of one other allegation.

According to the report, Judge Failla also denied six other allegations, saying she would not allow investors to make allegations against Tether and Bitfinex under the Racketeer Influenced and Corrupt Organizations Act (RICO). She also denied any claims related to extortion or the use of the proceeds from extortion for investments. In addition, Judge Failla noted that Tether and Bitfinex investors failed to maintain the companies’ monopoly over the stablecoin market inadequately.

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Tether commented on the latest development in the case and posted a blog post that said:

We are grateful to Judge Failla for her careful opinion, which uncovered many shortcomings in plaintiffs’ claims.

Tether says the lawsuit against it is unfounded

The stablecoin issuer added that the plaintiffs’ case is now in tatters as the court has raised significant issues with the remaining claims. According to Tether, these developments will ultimately be fatal to the plaintiffs’ case. Tether added that Judge Failla has already dismissed half of the plaintiffs’ trial, meaning the entire lawsuit is doomed. Confident that it will win the case, Tether said the turn of events was not surprising given that plaintiffs’ claims were unfounded.

The release also noted that Tether and Bitfinex were looking forward to litigation in the case, adding that a lawsuit would expose the lawsuit as a clumsy attempt to raise funds. According to Tether, this case is anchored on unsubstantiated claims that carelessly harm the entire crypto ecosystem.

This case began in October 2019 when plaintiffs alleged IFinex had manipulated the crypto market by issuing uncovered tether (USDT / USD). At the time, plaintiffs argued that the organization was trying to show the market and that the demand for cryptos was enormous. They added that IFinex was trying to raise the prices of cryptos and maintain a bubble in the crypto market.

Earlier this February, Tether and Bitfinex reached a settlement with the Office of the New York Attorney General (NYAG) after agreeing to the mismanagement of the USDT reserve funds. The settlement included the companies paying $ 18.50 million (£ 13.74 million) in damages. In addition, NYAG demanded that companies report their reserves quarterly and cease trading with New Yorkers.

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