Tether has been hit with a new class action lawsuit

The company now is accused of falsely supporting the stablecoin

15.12.2021 - 11:55

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2 min

What’s new? USDT Tether Holdings, a stablecoin issuer, is being sued collectively for the second time in a year. The complaint was filed by US citizens Matthew Anderson and Shawn Dolifka, who represent the people who bought the stablecoin. The lawsuit states that Tether Holdings falsely assured that USDT is fully backed by the US dollar.

Link to the complaint

What are the details of the lawsuit? The complaint states that Tether “misled the consumers regarding the attributes of USDT stablecoins.” The accusers claim that the sale of such an asset is a breach of contract. The plaintiffs claim they did not buy or would have paid less for the company's tokens. The accusers demand compensatory and consequential damages, the amount of which will be determined in the proceedings.

What did Tether Holdings answer? The company issued a statement on its blog, calling the lawsuit “nonsense” and “copycat.” Tether added that the plaintiffs are looking to benefit by making unsubstantiated allegations. The USDT issuer will pursue an “aggressive” lawsuit against the accusers.

Link to the Tether Holdings blog

What lawsuits have been filed against the company before? In February 2021, the company was fined $18,5 million for “illegal activities in New York.” The prosecutor claimed that the company defrauded its customers by overstating reserves. In October, the Commodity Futures Trading Commission fined Tether $41 million for “misrepresenting USDT support.” But in September, the company did win a case accusing a group of traders of manipulating the cryptocurrency market.

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