On November 22, without notice to us, a class action complaint was filed against Tether and Bitfinex in the U.S. District Court for the Western District of Washington. This copycat lawsuit suffers from the same multitude of deficiencies as the unsound complaint filed in the U.S. District Court for the Southern District of New York on October 6. The Plaintiffs’ claims here are similarly without merit, and Tether strongly contests the bogus research purporting to support them.
As we predicted last month, mercenary lawyers continue to try to use Tether to obtain a payday. To be clear, there will be no nuisance settlements or settlements of any kind reached. Instead, all claims raised across both actions will be vigorously contested and ultimately disposed of in due course. Once they are, Tether will fully evaluate its legal options against those bringing and promoting the baseless claims.
These absurd and groundless accusations are an attack on the growth, success and innovation of the entire digital token ecosystem, in which Tether is proud to play a critical role. Meritless lawsuits like these are a continuing affront to the efforts and dedication of Tether’s customers and all participants in the digital currency ecosystem. Our fight is the community’s fight.
Launched in 2014, Tether was the first blockchain-enabled platform to allow traditional currencies to be tokenized, allowing users to transact with fiat currencies across exchanges without the volatility associated with digital currencies. By introducing a fiat currency gateway to the Bitcoin and Ethereum blockchains, Tether made, and continues to make, a significant contribution to a more connected ecosystem by providing instant global transactions coupled with price stability.
Tether and its affiliates have never used Tether tokens or issuances to manipulate the cryptocurrency market or token pricing. All Tether tokens are fully backed by reserves and are issued pursuant to market demand, and not for the purpose of controlling the pricing of crypto assets. It is irresponsible to suggest that Tether enables illicit activity due to its efficiency, liquidity and wide-scale applicability within the cryptocurrency economy.