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Tether sued over alleged $42.4M USDT freeze
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Tether sued over alleged $42.4M USDT freeze

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  • Two Thai businessmen have sued Tether over 42.4 million USDT allegedly frozen without a court warrant.
  • The plaintiffs say Tether acted after an informal request from a US Homeland Security Investigations agent.
  • The case could affect how stablecoin issuers handle government requests to freeze funds.

Two Thai businessmen have sued Tether over 42,417,785 USDT (CRYPTO:USDT) allegedly frozen without a court warrant.

The lawsuit was filed in the US District Court for the Southern District of New York and challenges Tether’s handling of the funds.

According to the complaint, Tether blacklisted the address on October 30, 2025, after an informal request from a US Homeland Security Investigations agent.

The plaintiffs say there was no warrant or court order directing the freeze when it happened.

They say the US government later issued a seizure warrant in February 2026, ordering the USDT to be burned and reissued.

The plaintiffs want the freeze lifted and any token burn blocked, while also seeking damages and reserve-related interest income.

The case remains unresolved, and the plaintiffs’ claims have not been proven in court.

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