In a pivotal development that comes as a breath of relief for Tether and Bitfinex, Chief Judge Laura Taylor Swain of the U.S. District Court for the Southern District Of New York has issued a definitive ruling. This ruling emphatically rejects Shawn Dolifka’s entreaty to amend his class action complaint against these two entities, firmly rooted in its glaring lack of legal merit.
The ruling, further illuminated by a blog post from Bitfinex, sheds light on the intricacies of this legal victory. Judge Swain’s pronouncement did not merely dismiss Dolifka’s latest efforts but underscored that these attempts at introducing novel arguments had already faced rejection in prior legal proceedings.
Bitfinex’s blog post explicitly reiterated that this latest dismissal serves as a stern warning, not only to Dolifka but to anyone who has previously embarked upon or is contemplating frivolous legal actions fueled solely by the allure of financial gain that will ultimately yield a common outcome: a complete absence of financial reward.
Paolo Ardoino, the Chief Technology Officer of Bitfinex and Tether and a central figure in the cryptocurrency realm, celebrated this significant legal victory as a momentous achievement. Ardoino’s jubilation, however, comes amidst the backdrop of another spotlight-grabbing development. He is scheduled to undergo a deposition this week, a pivotal event in a protracted class-action lawsuit against both Bitfinex and Tether, along with their key stakeholders. This deposition comes in response to a New York judge’s order, filed on 11 September.
A New Turning In Tether vs. LeboBTC Lawsuit
The roots of this legal saga can be traced back to a lawsuit initiated in 2019 by Jason Leibowitz, co-founder, and CEO of LeboBTC, representing the plaintiff class. The lawsuit, initially brought forth, alleges colossal damages exceeding $1.4 trillion inflicted upon the cryptocurrency market, ostensibly attributed to the actions of Tether, Bitfinex, Crypto Capital, and their associated executives. The list of charges includes financial misconduct, including allegations of bank fraud and money laundering.
It’s noteworthy that Tether has steadfastly denied all allegations of misconduct, including accusations of market manipulation. A written statement vehemently refuting these claims was disseminated on the stablecoin issuer’s website a day before the lawsuit was formally filed in 2019.