Tether and its sister entity Bitfinex have scored a legal victory as a U.S. court throws out a lawsuit filed against both.
A point to note: Tether and crypto exchange Bitfinex are owned by the same company, iFinex.
In a ruling, Chief Judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York ordered that the class action lawsuit brought by Matthew Anderson and Shawn Dolifka against the Tether and Bitfinex companies be completely dismissed.
This is as the Court finds that the plaintiffs' complaint lacked any "plausible allegations of injury" because it contained no evidence that "USDT had a diminished actual value at all."
Tether assessed that the dismissal of the class action case at its early stage of proceedings might suggest that the plaintiffs' claims lacked legal merit.
Plaintiffs Matthew Anderson and Shawn Dolifka made allegations concerning Tether's (USDT) stablecoin backing in December 2021, which kicked off the case.
In a similar vein, U.S. crypto exchange Coinbase requested that a judge dismiss an SEC complaint brought against it, citing the recent Ripple ruling that determined that XRP was not a security when traded on exchanges.
Tether records $1 billion in operational profits in Q2
Tether reported in a BDO assurance opinion for the second quarter of 2023 that its excess reserves climbed by $850 million.
In this context, excess reserves are the firm's profits that are not distributed to shareholders and that the company selected to keep on top of the 100% reserves it maintains to back all outstanding tokens.
Tether noted in the report that its reserves are exceptionally liquid, with 85% of its investments kept in cash and cash equivalents.
Meanwhile, the company's operational profits exceeded $1 billion from April 2023 to June 2023, representing strong 30% growth quarter over quarter.