USDT stablecoin issued Tether Holdings has been slapped with a class-action lawsuit for supposedly false representation of its backing, CryptoBriefing reported.

  • The complaint was filed by disgruntled investors, US citizens Matthew Anderson and Shawn Dolfika in a New York court. They accused Tether of false representation on the stablecoin backing, which claimed 100% backing of US dollars.
  • The plaintiffs claimed that they were misled by Tether regarding the attributes of its tokens and said they would not have purchased or paid “significantly less” of the Tether tokens had they known the “false representations.”
  • Tether responded by describing the class action lawsuit as “nonsense” and “copycat,” saying that investors are just looking for a big paycheck based on “entirely meritless claims” and it would “aggressively litigate” against the complainants.

Tether in September scored a legal victory in a similar case after another group of traders claimed that the issuer manipulated the crypto market. USDT is down 0.10%.