The plaintiffs claim the firm of “unlawful and misleading” actions, claiming that it misled about its stablecoin becoming guaranteed one-to-one by adequate currency deposits and “suppressed” data about refusing to pass periodic audits. The class-action complaint claims that Tether violated the commitments it had with its members. Plaintiffs contend that as a result, they are entitled to “compensatory and consequential damages,” the quantum of which will be assessed at court.
The class members allege that if they had understood all of the unknown details concerning Tether’s interior processes, they might not have acquired the tokens or may have spent less for them. They are currently requesting both monetary and non-monetary remedies as permitted by law.
A heinous money grabbing
Tether has previously replied to the “nonsense, copycat” complaint, saying that it will battle its “meritless accusations” fiercely.
According to the corporation, the case, which it calls a “shameless money grab,” is not worth one satoshi (the smallest unit of Bitcoin) in hush money.
The contentious stablecoin corporation is no newcomer to judicial wranglings. It settled an $18.5 million lawsuit with New York Attorney General Letitia James in February for a hidden $850 million loan to associate cryptocurrency exchange Bitfinex.
Tether paid a $41 million punishment to the Commodity Futures Trading Commission in October after the agency convicted the company of providing deceptive claims about its flagship USDT stablecoin. Tether won a big victory in a trillion-dollar price rigging class-action lawsuit in September.