{"id":54676,"date":"2021-12-14T17:46:07","date_gmt":"2021-12-14T15:46:07","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=54676"},"modified":"2025-09-03T21:35:48","modified_gmt":"2025-09-03T18:35:48","slug":"tether-accused-of-unlawful-and-deceptive-practices","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/tether-accused-of-unlawful-and-deceptive-practices\/","title":{"rendered":"Tether accused of unlawful and deceptive practices"},"content":{"rendered":"<p>Investors filed a <a href=\\\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.571658\/gov.uscourts.nysd.571658.1.0.pdf\\\">class-action lawsuit<\/a> against the issuer of the stablecoin Tether (USDT). They accused the company of \u201cimmoral, unethical, discriminatory and unscrupulous\u201d practices.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<p>Plaintiffs Matthew Anderson and Shawn Dolifka challenged Tether\u2019s assertions of full backing of USDT by assets. In their view, the company misled investors, otherwise they would not have purchased the stablecoin.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<p>The plaintiffs referenced proceedings involving the firm and its affiliate Bitfinex.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<p>Anderson and Dolifka sought treble damages, penalties and compensation for data theft, as well as court costs.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<p>Tether called the complaint \u201canother baseless suit,\u201d filed in pursuit of a \u201clarge payout on utterly unfounded claims.\u201d<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<figure class=\\\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\\\">\n<div class=\\\"wp-block-embed__wrapper\\\">\\n<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-width=\\\"500\\\" data-dnt=\\\"true\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">Last Friday another nonsense, copycat lawsuit was filed by 2 Plaintiffs and their law firm looking for a payout based on meritless claims. We will aggressively litigate and dispense with the action in due course. <a href=\\\"https:\/\/t.co\/u5qemzvVTM\\\">https:\/\/t.co\/u5qemzvVTM<\/a><\/p>\n<p>\u2014 Tether (@Tether_to) <a href=\\\"https:\/\/twitter.com\/Tether_to\/status\/1470531930110132226?ref_src=twsrc%5Etfw\\\">December 13, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script>\\n<\/div>\n<\/figure>\n<p>\\n\\n\\n\\n<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cShameless seizure of funds, for which this lawsuit is a textbook example, will never be worth paying even a single satoshi to settle the dispute. Bitfinex and Tether will take an aggressive line of defense during the litigation and defeat the suit, and then take steps to compensate for the losses,\u201d the statement said.<\/p>\n<\/blockquote>\n<p>\\n\\n\\n\\n<\/p>\n<p>In February, the companies reached a settlement with the New York Attorney General\u2019s Office over a financial operation related to the loss of $850 million. Bitfinex and Tether <a href=\"https:\/\/u1f987.com\/en\/news\/bitfinex-and-tether-to-pay-new-york-state-18-5-million-in-settlement-over-financial-operations\">agreed to pay $18.5 million<\/a>.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<p>The settlement of claims by the U.S. Commodity Futures Trading Commission in October cost the companies more \u2014 <a href=\"https:\/\/u1f987.com\/en\/news\/cftc-orders-bitfinex-and-tether-to-pay-civil-penalties-totaling-42-5-million\">a civil penalty of $42.5 million<\/a>.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<p>In September, a court <a href=\"https:\/\/u1f987.com\/en\/news\/court-rejects-half-of-claims-against-tether-and-bitfinex-in-1-4-trillion-class-action\">dismissed half of the claims<\/a> against Tether and Bitfinex in the previously filed class-action suit worth $1.4 trillion.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<p>The plaintiffs also pointed to these proceedings.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<p>Earlier in August, Tether published an audit report by Moore Cayman, which <a href=\"https:\/\/u1f987.com\/en\/news\/report-nearly-50-of-usdt-backing-by-tether-consists-of-commercial-paper\">confirmed that USDT is 100% backed by assets<\/a>. However, cash and bank deposits accounted for 10% of the reserves, and 49% consisted of commercial securities.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<p>Bloomberg <a href=\"https:\/\/u1f987.com\/en\/news\/bloomberg-finds-chinese-commercial-paper-in-tethers-reserves\">found in the collateral for the stablecoin<\/a> short-term loans to major Chinese companies and loans to crypto-lending platforms.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<p>In the research firm Hindenburg Research, they doubted the veracity of information about Tether\u2019s reserves and <a href=\"https:\/\/u1f987.com\/en\/news\/hindenburg-research-offers-1-million-bounty-for-information-on-tethers-collateral\">offered a $1 million reward<\/a> for disclosure of previously unknown information about them.<\/p>\n<p>\\n\\n\\n\\n<\/p>\n<p>Follow ForkLog news on <a href=\\\"https:\/\/vk.com\/forklogcom\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener\\\">VK<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investors filed a class-action lawsuit against the issuer of the stablecoin USDT. They accused the company of &#8220;immoral, unethical, discriminatory and unscrupulous&#8221; practices.<\/p>\n","protected":false},"author":1,"featured_media":54677,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1162,27,1245],"class_list":["post-54676","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-court-cases","tag-russia","tag-tether-usdt"],"aioseo_notices":[],"amp_enabled":true,"views":"18","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/54676","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=54676"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/54676\/revisions"}],"predecessor-version":[{"id":54678,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/54676\/revisions\/54678"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/54677"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=54676"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=54676"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=54676"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}