Tether, the world’s largest stablecoin issuer, faced the news of a new lawsuit.
Plaintiffs Matthew Anderson and Shawn Dolifka filed a class action lawsuit against Tether in the US District Court for the Southern District of New York.
The plaintiffs allege that Tether company engaged in “illegal and deceptive” actions and lied about information about backing the company’s stablecoin one-on-one with adequate dollar reserves and failing to pass periodic audits.
Plaintiffs accuse Tether of violating contracts with members, adding that this incident is immoral and unethical.
In addition, the plaintiffs demand compensation for their direct and indirect damages at the end of the lawsuit.
Tether’s response was swift as the plaintiffs filed grievous claims against Tether. The company said it would file a lawsuit against the plaintiffs’ “tortious claims”, describing the lawsuit as “absurd and counterfeit”.
Tether also said that in the new lawsuit, which it describes as “shameless extortion,” the plaintiffs do not deserve even a satoshi (Bitcoin’s smallest unit) as settlement money.
Tether company is no stranger to legal battles. We will be following what kind of result Tether will achieve in this case, which has faced lawsuits before.