The USDT stablecoin has USDT news a dominant position in the stablecoin market, thanks to its 1:1 peg with US dollars. However, it hasn’t been without controversy. Throughout the years, there have been allegations that USDT’s cash reserves aren’t always in line with its claims of having 1:1 backing. There are also concerns about the centralized nature of USDT.

In a major win for Tether and Bitfinex, a US district court has dismissed a class action lawsuit filed by plaintiffs who claimed that the stablecoin’s peg with USD was false. The judge has said that the complaint lacked “plausible allegations of injury” and that the defendants did not misrepresent their USDT holdings.

USDT Issuer Tether Experiences One of the Largest Redemptions Since FTX Collapse

Tether, the issuer behind the world’s largest stablecoin by market capitalization, saw its USDT tokens slip against the dollar after the collapse of the Terra ecosystem in May and the implosion of Celsius Network’s lending platform in July. But USDT prices soon stabilised, as Tether assured holders that it supported redemptions and that its holdings of U.S. Treasuries were in line with its USD peg.

Then, in 2021, the New York Attorney General’s office revealed that USDT was backed by assets including Chinese securities, and that there were some discrepancies between Tether’s accounts and its actual reserves. The scandal was a significant blow to Tether’s reputation and its USDT market share, which ultimately dropped from $83 billion to $63 billion at the peak.