A federal judge in the US court has approved the filing of a class action lawsuit by investors. It is against Tether and Bitfinex. The decision is a big step forwardA federal judge in the US court has approved the filing of a class action lawsuit by investors. It is against Tether and Bitfinex. The decision is a big step forward

US Court Allows Class Action Against Tether and Bitfinex

2026/03/07 15:23
4 min read
For feedback or concerns regarding this content, please contact us at crypto.news@mexc.com

A federal judge in the US court has approved the filing of a class action lawsuit by investors. It is against Tether and Bitfinex. The decision is a big step forward in one of the crypto industry’s longest running legal battles. On February 23, Judge Katherine Polk Failla of the U.S. District Court for the Southern District of New York. She has granted class certification to investors. Those who accuse the companies of manipulating crypto prices. 

The lawsuit claims the firms inflated the value of BTC or ETH. Between 2017 and 2019 by issuing unbacked USDT tokens. Investors say the alleged actions distorted the market. Which caused billions of dollars in losses. The ruling doesn’t decide whether Tether or Bitfinex broke the law. But it allows the case to move forward as a class action. As a result, thousands of investors could now participate in the lawsuit.

US Court Grants Class Certification With Modifications

Judge Failla approved the plaintiffs’ request under Federal Rule of Civil Procedure 23. But she granted it in a modified form. The court divided investors into two groups to manage the case more effectively. One group includes spot market investors who bought BTC or ETH directly. The second group covers traders who dealt in crypto futures markets.

The court also reviewed expert testimony linked to the case. The judge partly accepted and partly rejected attempts. To exclude the testimony of economist Dr. David W. DeRamus. Overall, the decision allows investors to pursue their claims together. Instead of filing individual lawsuits. That structure could bring thousands of participants into the case. Therefore, the potential financial exposure for the defendants could be significant.

Allegations Focus on USDT Issuance and Market Impact

The core claim centers on how USDT tokens were issued between 2017 and 2019. Plaintiffs argue that Tether created large amounts of USDT without full backing in reserves. According to the lawsuit, those tokens were then used to buy BTC or ETH. As a result, the purchases allegedly created artificial demand in the market. 

During the 2017 bull run, investors say this activity led to rising crypto prices. Many investors suffered heavy losses when prices later corrected. Plaintiffs argue that the manipulation caused billions of dollars in damages across the market. The allegations also revive old concerns about Tether’s transparency. Regulators have examined the company’s reserves several times in the past.

The lawsuit first appeared in 2019. As a consolidated class action in the Southern District of New York. Since then, the case has gone through several legal challenges. Earlier rulings dismissed some claims. Including certain racketeering accusations. But other claims survived. These include claims of common law fraud, commodities fraud and antitrust offenses. Tether and Bitfinex have repeatedly denied charges. The companies argue that the claims lack evidence. It also misrepresents how their operations work.

What Happens Next?

The case is far from finished. The court is currently handling a redaction process for the sealed opinion. Both sides must submit proposals by March 9. Then the lawsuit will likely move into further legal actions. Appeals are also possible before the case goes to trial.

But the ruling carries broader impacts. Stablecoin practices and their impact on the crypto market. Those are at the center of the dispute. As a result, industry observers are keeping an eye on matters. If the case proceeds to trial. It could set up key precedents for how courts handle. The market manipulation claims in the digital asset sector. For now, the legal battle between investors, Tether and Bitfinex continues.

The post US Court Allows Class Action Against Tether and Bitfinex appeared first on Coinfomania.

Market Opportunity
Union Logo
Union Price(U)
$0.001051
$0.001051$0.001051
+3.14%
USD
Union (U) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact crypto.news@mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Satoshi-Era Mt. Gox’s 1,000 Bitcoin Wallet Suddenly Reactivated

Satoshi-Era Mt. Gox’s 1,000 Bitcoin Wallet Suddenly Reactivated

The post Satoshi-Era Mt. Gox’s 1,000 Bitcoin Wallet Suddenly Reactivated appeared on BitcoinEthereumNews.com. X account @SaniExp, which belongs to the founder of the Timechain Index explorer, has published data showing that a dormant BTC wallet was activated after hibernating for six years. However, it was set up 13 years ago, according to the tweet — the time when Satoshi Nakamoto’s shadow was still casting itself around, so to speak. The X post states that the tweet belongs to infamous early Bitcoin exchange Mt. Gox, which suffered from a major hack in the early 2010s, and last year it began paying out compensation to clients who lost their crypto in that hack. The deadline was eventually extended to October 2025. Mt. Gox’s wallet with 1,000 BTC reactivated The above-mentioned data source shared a screenshot from the Timechain Index explorer, showing multiple transactions marked as confirmed and moving a total of 1,000 Bitcoins. This amount of crypto is valued at $116,195,100 at the time of the initiated transaction. Last year, Mt. Gox began to move the remains of its gargantuan funds to pay out compensations to its creditors. Earlier this year, it also made several massive transactions to partner exchanges to distribute funds to Mt. Gox investors. All of the compensations were promised to be paid out by Oct. 31, 2025. The aforementioned transaction is likely preparation for another payout. The exchange was hacked for several years due to multiple unnoticed security breaches, and in 2014, when the site went offline, 744,408 Bitcoins were reported stolen. Source: https://u.today/satoshi-era-mtgoxs-1000-bitcoin-wallet-suddenly-reactivated
Share
BitcoinEthereumNews2025/09/18 10:18
The U.S. Department of Defense has appointed a former DOGE official as Chief Data Officer to lead efforts in the field of AI.

The U.S. Department of Defense has appointed a former DOGE official as Chief Data Officer to lead efforts in the field of AI.

PANews reported on March 7 that, according to Reuters, the U.S. Department of Defense has appointed computer scientist Gavin Kliger as chief data officer. Kliger
Share
PANews2026/03/07 21:00
Fed Makes First Rate Cut of the Year, Lowers Rates by 25 Bps

Fed Makes First Rate Cut of the Year, Lowers Rates by 25 Bps

The post Fed Makes First Rate Cut of the Year, Lowers Rates by 25 Bps appeared on BitcoinEthereumNews.com. The Federal Reserve has made its first Fed rate cut this year following today’s FOMC meeting, lowering interest rates by 25 basis points (bps). This comes in line with expectations, while the crypto market awaits Fed Chair Jerome Powell’s speech for guidance on the committee’s stance moving forward. FOMC Makes First Fed Rate Cut This Year With 25 Bps Cut In a press release, the committee announced that it has decided to lower the target range for the federal funds rate by 25 bps from between 4.25% and 4.5% to 4% and 4.25%. This comes in line with expectations as market participants were pricing in a 25 bps cut, as against a 50 bps cut. This marks the first Fed rate cut this year, with the last cut before this coming last year in December. Notably, the Fed also made the first cut last year in September, although it was a 50 bps cut back then. All Fed officials voted in favor of a 25 bps cut except Stephen Miran, who dissented in favor of a 50 bps cut. This rate cut decision comes amid concerns that the labor market may be softening, with recent U.S. jobs data pointing to a weak labor market. The committee noted in the release that job gains have slowed, and that the unemployment rate has edged up but remains low. They added that inflation has moved up and remains somewhat elevated. Fed Chair Jerome Powell had also already signaled at the Jackson Hole Conference that they were likely to lower interest rates with the downside risk in the labor market rising. The committee reiterated this in the release that downside risks to employment have risen. Before the Fed rate cut decision, experts weighed in on whether the FOMC should make a 25 bps cut or…
Share
BitcoinEthereumNews2025/09/18 04:36