Court certifies crypto class action

On March 6, 2026, Judge Katherine Polk Failla of the U.S. District Court for the Southern District of New York granted class certification with modifications in *In Re Tether & Bitfinex Crypto Asset Litigation*, a case centered on allegations that defendants artificially inflated cryptocurrency prices through the issuance of unbacked or debased stablecoins. The litigation was brought by four purchasers of Bitcoin and other crypto assets against various entities and individuals associated with a major stablecoin issuer and its affiliated crypto asset exchange.

The plaintiffs alleged market manipulation under the Commodities Exchange Act and violations of the Sherman Act, including monopolization and restraint of trade. Judge Failla's decision to grant certification with modifications reflects the court's assessment that class-wide proof mechanisms could be established, but only under specific constraints. The certified class was limited to purchasers who acquired cryptocurrencies using fiat currency or stablecoins on domestic or stateless exchanges—a narrowing that reduces the potential class size and scope compared to the original complaint.

A critical limitation imposed by the court is that causation remains reserved for summary judgment proceedings. This means the court did not definitively establish that the defendants' provision of unbacked or debased stablecoins actually caused the observed increases in cryptocurrency prices. This reservation is strategically significant: defendants retain a viable path to dismissal by challenging the causal link between the alleged stablecoin manipulation and price movements in Bitcoin and other digital assets—a complex empirical question in crypto markets.

The certification decision establishes important procedural guidance for the broader crypto litigation landscape. Plaintiffs seeking to certify similar antitrust or commodities-based class actions must present reliable expert models addressing both class-wide causation and damages calculations. The ruling signals that while courts recognize the potential for class treatment in crypto cases, they remain skeptical of simplified or speculative causal theories linking stablecoin issuance to downstream price effects across heterogeneous crypto assets and trading venues.

This decision carries implications for institutional and family office investors who have purchased cryptocurrencies, as it both expands litigation options for recovery while simultaneously highlighting evidentiary hurdles that defendants will aggressively exploit at the summary judgment stage.