U.S. Federal Court Grants Class Action Status in Tether, Bitfinex Market Manipulation Case Over 2017–2019 USDT Issuance

A U.S. federal court in New York granted class action status on March 6, 2026, in a lawsuit accusing Tether and Bitfinex of manipulating cryptocurrency markets through USDT issuance between 2017 and 2019, U.S. District Judge Katherine Polk Failla ruled. The judge split plaintiffs into two groups—spot market buyers of cryptocurrencies and futures traders—and allowed thousands of investors to proceed together. The complaint alleges that large volumes of Tether issued during that period without adequate backing were used to purchase Bitcoin and Ethereum, inflating prices during the 2017 bull run and contributing to heavy losses when the market corrected, with alleged damages estimated in the billions of dollars. The ruling moves the case into an evidence phase, with both sides required to submit proposals by March 9, while Tether and Bitfinex continue to deny the claims as based on incorrect assumptions.