{"id":346062,"date":"2021-09-29T22:45:00","date_gmt":"2021-09-29T19:45:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/tether-scores-win-in-class-action-case-as-court-dismisses-rico-claims\/"},"modified":"2021-09-29T22:45:00","modified_gmt":"2021-09-29T19:45:00","slug":"tether-scores-win-in-class-action-case-as-court-dismisses-rico-claims","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/tether-scores-win-in-class-action-case-as-court-dismisses-rico-claims\/","title":{"rendered":"# Tether scores win in class action case as court dismisses RICO claims"},"content":{"rendered":"

“# Tether scores win in class action case as court dismisses RICO claims <\/strong>”
\n<\/p>\n

The judge in the class-action lawsuit filed in the Southern District of New York against stablecoin issuer Tether and crypto exchange Bitfinex has granted motions to dismiss many of the claims in the case.<\/p>\n

According to court documents filed Tuesday in the Southern District of New York, District Judge Katherine Polk Failla has granted motions from Tether\u2019s and Bitfinex\u2019s\u00a0parent company iFinex to dismiss key claims in the plaintiffs\u2019 case that the two firms manipulated the crypto market. Altogether, Judge Failla granted motions to dismiss five complete claims and part of one, while denying six others.<\/p>\n

Specifically, the judge said she would not allow investors to bring claims against Tether and Bitfinex under the Racketeer Influenced and Corrupt Organizations Act, or RICO, nor allegations related to racketeering or using the proceeds of racketeering for investments. She also said Tether and Bifinex investors could not \u201cinadequately allege\u201d the companies\u2019 monopoly power in the stablecoin market.<\/p>\n

\u201cThis case is doomed,\u201d said<\/a> Tether in a Wednesday blog post. \u201cEven for the remaining claims, the Court\u2019s order raises substantial issues that will ultimately be fatal to the plaintiffs\u2019 case.\u201d<\/p>\n

The firm added:<\/p>\n

\u201cLitigation will expose this case for what it is: a clumsy attempt at a money grab, which recklessly harms the whole cryptocurrency ecosystem.\u201d<\/p><\/blockquote>\n

Related: <\/em><\/strong>Bitfinex Market Manipulation Lawsuit Refiled in New York and Joined by Second Case<\/em><\/strong><\/p>\n

The initial complaint against iFinex in October 2019 alleged that the firm manipulated the crypto market by issuing unbacked Tether (USDT) \u201cin an effort to signal to the market that there was enormous, organic demand for cryptocommodities.\u201d The plaintiffs allege that the firm wanted to inflate the price of cryptocurrencies like Bitcoin (BTC), \u201cthereby creating and sustaining a \u2018bubble\u2019 in the cryptocommodity market.\u201d<\/p>\n

While Bitfinex and Tether settled its case with the Office of the New York Attorney General<\/a> in February over mismanagement of USDT reserve funds, the civil action with a group of aggrieved crypto investors continues. In the former case, Bitfinex and Tether agreed to pay $18.5 million for damages to New York and submit to periodic reporting of their reserves in addition to stopping service to customers in the state.<\/p>\n