Second Circuit Rejects Tether, Bitfinex Class Certification Appeal
On Thursday, July 2, 2026, Law360 reported that the Second Circuit rejected an immediate appeal bid by cryptocurrency firms Tether and Bitfinex. The companies sought to challenge a federal judge's decision to certify a class-action lawsuit alleging market manipulation that allegedly cost investors hundreds of billions of dollars.
A three-judge panel on the appeals court determined that an immediate appeal was not necessary at this stage, though they did allow Tether and Bitfinex to submit a response to the certification ruling. While U.S. Circuit Judge Steven J. Menashi favored hearing the appeal, the majority's reasoning was not detailed in the court's brief order.
Tether and Bitfinex had petitioned for this expedited appeal in March, contending that the lower court erred in its legal interpretations and abused its discretion when certifying the investor classes.
U.S. District Judge Katherine Polk Failla had previously approved class certification for investors who purchased bitcoin or ethereum, but she did refine the scope of the classes, noting that not all investors had a clearly defined injury.
Investors are claiming that the Bitfinex exchange, in conjunction with Tether, the entity behind a stablecoin of the same name, perpetrated a multifaceted scheme described as "part fraud, part pump-and-dump and part money laundering." This alleged scheme is central to the investors' assertion that they suffered losses totaling hundreds of billions of dollars.
The basis for these claims is significantly drawn from an unpublished report by a university professor, which was initially revealed in June 2018 and later updated in October 2019. This report detailed findings suggesting that Bitfinex and Tether had coordinated their activities to manipulate the price of bitcoin.
Source: Law360
