Dismissal of Lawsuit Against Tether and Bitfinex Affirmed, Plaintiff Drops Appeal

The U.S. District Court for the Southern District of New York has finalized the dismissal of a class action lawsuit against Tether and Bitfinex. This lawsuit, initially filed by plaintiffs Shawn Dolifka and Matthew Anderson in 2021, targeted the stablecoin issuer Tether and its affiliated company Bitfinex. The primary allegation centered on the claim that Tether’s USDT stablecoin was not backed one-to-one with U.S. dollars as the company had stated. The plaintiffs argued that Tether and Bitfinex did not maintain adequate reserves for the USDT in circulation, thereby misleading investors and the market​​​​.

Judicial Proceedings and Outcome

The case saw a decisive turn when Chief Judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York issued a comprehensive 6-page decision. This decision included an order dismissing the class action lawsuit in its entirety, citing the meritless nature of the claims. Following the denial of Dolifka’s motion to amend his complaint, the plaintiffs chose not to appeal the judgment, effectively bringing the legal battle to a close. This outcome has been viewed as a significant legal victory for Tether and Bitfinex, as it upholds the dismissal of what was deemed a baseless lawsuit​​​​​​.

Implications and Future Considerations

Despite this legal victory for Tether and Bitfinex, the lawsuit highlighted ongoing concerns and controversies surrounding Tether’s claims about its USDT reserves. The case has brought to light the critical need for transparency and accurate disclosure in the cryptocurrency industry, particularly for stablecoins, which play a vital role in the market. This dismissal, while affirming Tether and Bitfinex’s position, also serves as a reminder of the legal and regulatory scrutiny that crypto entities can face​​​​.

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Ripple on the Brink of Decisive Win as SEC Legal Battle Nears End

In the continuing saga of Ripple versus the United States Securities and Exchange Commission (SEC), recent developments suggest a leaning in favor of Ripple, a prominent figure in the cryptocurrency space. Legal experts and community stakeholders are weighing in on the potential outcomes and implications of the case. John Deaton, a leading cryptocurrency attorney, has offered his insight, framing the situation as a significant victory for Ripple, should the case settle for $20 million or less.

Deaton’s comments came in response to general opinions mistaking the case’s conclusion for a balanced verdict between Ripple and the SEC. Instead, Deaton affirms a 90/10 advantage in favor of Ripple, negating the previously held 50/50 assumption. These remarks align with Ripple’s Chief Legal Officer Stuart Alderoty’s note on yet another legal setback for the SEC, referencing the outcome of the SEC vs. Govil case. The Second Circuit Court’s ruling against the SEC’s ability to seek large disgorgement orders without showing actual financial harm to investors strengthens Ripple’s stance. The community has echoed this sentiment, with figures like Wayne Vaughan and Crypto Adviser voicing their perspectives on Twitter, pointing towards a skewed settlement that favors Ripple and criticizing the SEC’s approach to investor protection.

The case, initially launched by the SEC in December 2020, accused Ripple Labs of conducting an unregistered securities offering via XRP sales. This development underscored the growing scrutiny around digital currencies and the SEC’s role in regulating them. The recent approval by Judge Torres of a joint request from the SEC and Ripple to establish a briefing schedule on institutional XRP sales further indicates a progression towards a conclusion. This request, linked to allegations of Rule 10b-5 violations by Ripple, sets a stage for both parties to present a comprehensive briefing schedule by November 9.

As the Ripple vs. SEC case evolves, the implications for the regulatory framework governing digital currencies remain significant. The legal fraternity and crypto community are closely monitoring the unfolding events, with the consensus tilting towards a favorable lean for Ripple. The final resolution of this case could set a precedent for future securities offerings and regulatory actions within the crypto space.

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Bored Ape Yacht Club wins legal battle

Bored Ape Yacht Club (BAYC) creator Yuga Labs has emerged victorious in a legal battle with Ryder Ripps, the co-creator of copycat NFT project RR/BAYC. Yuga Labs had filed a complaint against Ripps and his co-founder, Jeremy Cahen, alleging trademark infringement, false advertising, and unfair competition, among other things. The US District Court for the Central District of California ruled in favor of Yuga Labs in a pre-trial summary judgment on April 21, finding that Ripps and Cahen had indeed infringed Yuga Lab’s trademarks with their RR/BAYC NFT collection. The court has also ruled that Yuga Labs is entitled to an injunction and damages, which will be determined at trial.

This legal victory is being hailed as a landmark moment for Web3, as it sends a message to scammers and counterfeiters that they will be held accountable. Ripps and Cahen had created RR/BAYC back in May 2022 as a protest against Yuga Labs, using all of the same imagery as the original BAYC NFTs. Ripps is also known for his conspiracy theory that the BAYC artwork was designed to convey racist caricatures, and that the project’s logo and branding have several nods to certain Nazi symbols and language.

In other news, Mandala Metaverse has selected Polkadot to host its first major NFT drop on April 28. Mandala Metaverse is a story-based project that spans TV, graphic novels, gaming, and AR, and its gaming elements have been developed in Epic Games’ AAA quality Unreal Engine. The NFT drop, called “Cryptonauts,” features various avatars that will serve as playable characters in the game. The artwork was illustrated by comic artist Bruce Zick, who has worked with giants such as Disney and Marvel.

Polkadot is not known for hosting gaming and NFT projects, with no recorded sales data on aggregators such as CryptoSlam. However, Mandala Metaverse CEO Jon Shanker believes that Polkadot’s real future-proof NFT applications, such as nesting, staking, and the ability to send NFTs over bridges, make it an ideal choice for the Cryptonauts NFTs.

Moving on, Square Enix, the developer of Final Fantasy, has partnered with Web3 infrastructure firm Elixir Games to bring blockchain gaming to the mainstream. Although details on the partnership are still scarce, Elixir Games offers both traditional and Web3 games on its platform, along with Web3 distribution features such as NFT sales and marketplaces. Square Enix is increasingly interested in launching games via Elixir, and this partnership is expected to bring blockchain gaming closer to mass adoption.

Finally, a free-to-play multiplayer NFT cricket strategy game called Cricket Stars has been launched on the Tezos blockchain.


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