Judge Approves $4 Billion Lawsuit Against Tether to Proceed

A New York judge has authorized a $4 billion lawsuit against Tether, the company behind the stablecoin USDT, to move forward. The lawsuit alleges that Tether conspired with the cryptocurrency exchange Bitfinex to manipulate the cryptocurrency market, causing losses for investors. Plaintiffs claim that Tether issued USDT without sufficient backing by U.S. dollars, leading to an artificial inflation of Bitcoin and other cryptocurrency prices. The suit further alleges that Tether and Bitfinex deliberately concealed Bitfinex’s financial losses by using USDT to purchase Bitcoin and prop up its price. Tether and Bitfinex have strongly denied these allegations, defending the integrity of USDT and the transparency of their operations. The case will now proceed into discovery and other legal procedures before a determination is made as to whether it will go to trial. Many industry observers are closely watching this case, as it could have significant implications for the future of stablecoins and the cryptocurrency market as a whole.