Tether Faces Lawsuit Over $42M USDT Freeze Without Warrant
- Tether froze $42.4 million in USDT linked to two Thai investors on Oct. 30, 2025.
- A seizure warrant was not issued until Feb. 19, 2026, nearly four months after the freeze.
- Plaintiffs Nutthawat Rukthammachalern and Natthawat Kasamvilas filed suit against Tether on Aug. 31, seeking damages and removal from the blacklist.
- The funds were allegedly tied to a pig-butchering investment scam investigation by authorities in North Carolina.
- Tether’s freezing power is under scrutiny as it has coordinated with law enforcement on large asset freezes before.
The lawsuit challenges Tether’s ability to freeze funds without a warrant, highlighting the company’s role in coordinating with law enforcement for asset freezes involving stablecoins. The plaintiffs argue they were not involved in any fraudulent schemes and seek relief from the court.
Tether’s unilateral freezing of $42 million in USDT without prior legal backing raises questions about its practices and potential overreach in handling suspected illicit activities involving stablecoins. (Source)
