On 6 March 2026, the U.S. federal court allowed the Tether, Bitfinex Crypto Case to move forward as a class action. However, the investor’s case claims that both companies manipulated Bitcoin and Ethereum prices during the 2017 crypto boom using newly issued USDT tokens.
A federal judge in New York approved class action status in an ongoing lawsuit against Tether and Bitfinex. The decision made by U.S. District Court Judge Katherine Polk Failla allowed thousands of investors to join the lawsuit instead of filing individual claims.
The judge divided the plaintiffs into two groups to manage the case more efficiently. One group represents investors who bought cryptocurrencies directly in the spot market, while the second group includes traders who used futures contracts.
Meanwhile, the judgment of this case does not determine whether the companies broke the law. However, it allows the case to move forward toward further legal proceedings.
Investors claim that large amounts of Tether (USDT) were issued between 2017 and 2019 without proper backing. According to the complaint, these tokens were allegedly used to buy Bitcoin and Ethereum, pushing prices higher & creating a market bubble.
The plaintiffs argue that the manipulation caused artificial price inflation during the historic 2017 bull run.
When the market later corrected, many investors suffered heavy losses. Some estimates suggest the alleged manipulation may have caused billions of dollars in damages across the crypto market.
Both Tether and Bitfinex have strongly denied the accusations. The companies say the lawsuit is based on incorrect assumptions and misunderstand how USDT issuance and trading activity work.
Now that the class action status is approved, the case will move to the next stage, where both sides will present evidence.
For now, the court is reviewing parts of the judge’s sealed opinion. Lawyers from both sides must submit their proposals by March 9.
Meanwhile, any major ruling could affect future rules on stablecoin transparency and market practices.
The lawsuit stems from the 2017 crypto bull run, when investors claimed large USDT issuances were used to buy Bitcoin and Ethereum and artificially inflate prices.
No. The court only approved class action status, allowing thousands of investors to join the case while the court reviews evidence and legal arguments
The case now moves to the evidence phase. Both sides will present documents and arguments before the court decides whether the claims have merit.
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