Class action case against Bitfinex gets dismissed, marking another legal win

cyptouser11 months agoDerivatives Exchanges290

Class action case against Bitfinex gets dismissed, marking another legal win

Crypto exchange Bitfinex has secured another significant legal victory, as a class action lawsuit against it was dismissed by Chief Judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York, according to a statement from the Bitfinex blog on Sept 12.

The lawsuit filed by Shawn Dolifka, a plaintiff whose request for leave to amend was denied by the court, sought to revisit arguments previously rejected. His proposed amendment failed to rectify the fundamental defects of his claims according to the court’s decision. Bitfinex stated,

“The entirety of the class action complaint being dismissed at this stage of the proceedings punctuates the fact that plaintiff’s claims were void of any legal merit.”

This dismissal underscores the notion that the plaintiff’s claims lacked any legal merit and reaffirms Bitfinex’s and Tether’s stand against litigation attempts aimed at monetary gains.

A month ago, Tether declared a similar victory, as the case against it was also dismissed by the same court. The allegation, initiated in Dec. 2021 by plaintiffs Matthew Anderson and Shawn Dolifka, questioned the backing of USDT. The claim was based on findings by the New York Attorney General (NYAG), the Commodities Futures Trading Commission (CFTC), and Tether’s statements about its reserve makeup.

The court ruled the case as meritless, indicating the plaintiff’s failure to present plausible allegations of injury or a decrease in USDT’s value. These legal proceedings emphasized the absence of viable legal allegations by the plaintiffs and served as a testament to the resilience of Bitfinex and Tether amidst litigations.

Past litigation.

This legal win for Bitfinex brings to mind a case from Oct. 2019, where they were accused of perpetuating a $1.4 trillion market manipulation, according to an article by CryptoSlate. iFinex, the parent company of Bitfinex and Tether, was faced with a lawsuit filed by five traders claiming class members suffered significant damages. Bitfinex dismissed these claims as “meritless and mercenary.”

Despite the continuous legal challenges, Bitfinex and Tether’s representatives maintain their commitment to customer protection and ongoing services. As the industry matures, navigating legal waters, such developments are essential in shaping the future norms and standards of the digital asset market.

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