Thai Businessmen Sue Tether Over $42M Fund Freeze in Pig Butchering Case
- Two Thai businessmen filed a lawsuit against Tether in a New York district court, claiming the company illegally froze $42.4 million in Tether USDt (USDT).
- The freeze occurred in October following an informal request from US Homeland Security Investigations, without a warrant.
- A seizure warrant was later issued in February as part of a broader investigation into a $61 million pig butchering scheme.
- The lawsuit questions the authority of stablecoin issuers to freeze funds and seeks to unfreeze the assets and obtain punitive damages.
- In February, a US court sentenced an individual involved in another pig butchering scam to twenty years in prison for orchestrating a $73 million fraud.
This case highlights ongoing legal challenges surrounding the actions of stablecoin issuers and their ability to manage funds linked to alleged scams, particularly as authorities work on large-scale investigations into fraudulent schemes.
The plaintiffs argue that Tether’s actions were unjustified, especially since they did not receive a warrant until months after the initial freeze of $42 million in funds.(Source)
