Class Action Lawsuit Against Tether, Bitfinex Dismissed
A class action lawsuit filed against cryptocurrency firms Tether and Bitfinex was dismissed Friday by a federal judge in New York. The judge ruled the complaint lacked plausible claims of injury and failed to show that Tether’s stablecoin USDT had diminished in value.
Judge Dismisses Market Manipulation Case Against Bitfinex and Tether
A high-profile class action lawsuit filed against cryptocurrency firms Tether and Bitfinex was dismissed Friday by chief judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York. Judge Swain ruled the complaint lacked plausible allegations of injury and failed to demonstrate damages resulting from the actions of Tether and Bitfinex.
It's a good Friday.#Tether and @Bitfinex Win Comprehensive Legal Victory as U.S. District Court Dismisses Class Action Lawsuit
The Court correctly held that plaintiffs’ complaint lacked any “plausible allegations of injury” because it includes no facts showing that “USDT had a…
— Paolo Ardoino 🍐 (@paoloardoino) August 4, 2023
The lawsuit, originally filed in October 2019, accused Tether and Bitfinex of market manipulation through the issuance of unbacked USDT stablecoins. Tether is the company that issues USDT, which is pegged to the U.S. dollar. Bitfinex is a cryptocurrency exchange that shares common owners and executives with Tether.
In her ruling, Judge Swain wrote that the complaint includes no facts showing that USDT had a diminished actual value at any time and lacks any plausible allegations of injury, according to a blog post published by Tether. She dismissed the case in its entirety.
Tether welcomed the dismissal, saying in a statement that the claims were “void of any legal merit.” The company said it remains focused on fulfilling its commitments to customers and the cryptocurrency community.
According to the memorandum order on Pacer, the plaintiffs can file a motion to amend their complaint within 21 days to address the issues cited by judge Swain. If no motion is filed, the claims will be dismissed with no further notice due to lack of jurisdiction. The news follows Tether’s latest assurance report which showed a reserve increase of $850 million in the second quarter of 2023.
What do you think about the case against Tether and Bitfinex getting dismissed? Share your thoughts and opinions about this subject in the comments section below.
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Worldcoin Vulnerability: Blockchain Security Firm Exposes Unverified Orb Operator Access
Blockchain security company CertiK recently revealed a serious flaw that put the Worldcoin system at serious risk. The system’s security and integrity might have been compromised if the vulnerability allowed Orb operators unrestricted access.
Users’ iris information was collected as part of Worldcoin’s Orb activities, necessitating a strong verification process to guarantee that only reputable businesses are in charge of the operations.
The system’s fault, however, made it possible for bad actors to get through the rigorous verification process without fulfilling the requirements.
Following the usual whitehat disclosure process, CertiK quickly informed the Worldcoin security team of the vulnerability.
Prompt Patching: Addressing The Vulnerability
Worldcoin has provided a patch to address the vulnerability in a prompt manner as a response to the threat. Attackers were unable to exploit the vulnerability due to the swift action taken.
Although CertiK acknowledged that the remedy effectively reduced the threat, they chose to reserve further information regarding the vulnerability and its mitigation for a later time.
This choice was probably intended to stop potential attackers from learning about the vulnerability before most users had a chance to upgrade their systems.
Worldcoin had only published reports on security audits conducted by Nethermind and Least Authority a week prior to the discovery of this vulnerability. These audits sought to find code flaws and strengthen defenses against intrusions.
Some 26 issues were found by Nethermind’s audit that needed to be addressed, and 24 of these were quickly resolved by Worldcoin during the verification phase. One of the remaining two problems was reduced, while the other was noted.
Six remedies were proposed by Least Authority to tackle th three challenges, all of which were either handled by Worldcoin or were planned to be addressed.
Worldcoin Confirms Flaw, No Real-World Attacks
Worldcoin confirmed the alleged flaw but stressed that it had not been used in any real-world attacks. They stressed that the vulnerability never provided access to Orbs or data, and that the manual review process for creating operator accounts for Orbs was never circumvented.
The fact that Worldcoin was able to address the problem within 24 hours of its discovery showed how dedicated they were to upholding the protocol’s security.
Even after the public debut of Worldcoin was initially a success, with favorable token prices and high enrollment rates, the project remained divisive because of worries that one business would have complete control over huge quantities of user personal information.
Meanwhile, criticism of the potential effects on data privacy and security was made by individuals like US National Security Agency whistleblower Edward Snowden and Ethereum co-founder Vitalik Buterin.
Concerns about the project’s potential for amassing enormous amounts of personal data that could be used for illicit activities have legitimately sparked concerns about the ethical issues surrounding such cutting-edge identification and financial networks.
Featured image from Worldcoin
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