Bitfinex has stated that the District Court has rejected their request for leave to amend the class action and that they anticipate receiving a favorable judgment soon. Tether is on the list as well, waiting for the final verdict. Laura Taylor Swain, the Chief Judge, has rejected Shawn Dolifka’s request for leave to amend.
Rejection after the Judge observes that Shawn’s claims have previously been rejected. Statements posted in the announcement by Bitfinex are pretty strong in language. The venture has literally not spared in calling their attempts shameless of grabbing money with absolutely no grounds to justify their allegations in the first place. Dolfka continued raising arguments that were previously rejected. Hence, paving the way for the dismissal.
Bitfinex has assured the community that they will never fall prey to such claims, which are void of any legal merit. It has also assured that plaintiffs like Shawn Dolifka will be left with nothing to their name.
The development follows the dismissal of the allegation against two crypto exchange platforms. It centered around the allegation that Tether and Bitfinex had deceived investors with details about the USDT stablecoin. Per allegation, the stablecoin was backed by reserves, and the token was pegged to the US Dollar.
However, plaintiffs, including Matthew Anderson, could not prove that they had suffered any actual loss due to misrepresentation.
In the words of Judge Swain, a complaint filed by plaintiffs lacked any plausible allegation of injury. It added that no facts were put on the table that could demonstrate that the stablecoin had diminished in value. Shawn and Matthew had alleged that they suffered through fraud and misrepresentation.
The lawsuit was brought to light two years ago. It had started to have the potential to cause reputational damage to Tether and Bitfinex exchange. With the latest development of the dismissal of leave to amend a class action, there is an optimistic hope that both ventures will soon have the judgment in their favor. Meanwhile, they have assured that they will continue to operate with compliance and responsibility toward all customers.
Tether and Bitfinex will still have a long way to go if Judge Laura delivers a verdict in their favor.
The CFTC is pursuing civil enforcement action against both companies. Also, the New York Attorney General is looking into the workings of Tether. So, even if the case against Shawn and Matthew is settled, both crypto ventures will have to enter a new battle after that to prove their innocence.
For now, it is difficult for the plaintiffs to prove that they have grounds for their allegation. Tether and Bitfinex are likely to win this case now that the request for leave to amend the class action has been dismissed by Judge Laura.