Tether Faces Lawsuit Over $2.76 Million USDT Freeze
- Conduit has filed a lawsuit against Tether in New York federal court, claiming the stablecoin issuer froze $2.76 million in its treasury wallet on September 24, 2025.
- The freeze was allegedly due to a Brazilian police investigation into Onix, though Conduit’s wallet was created after Onix’s last transaction and never held Onix funds.
- Conduit claims the freeze led to layoffs and office closures while Tether profited from interest on backing reserves.
- The lawsuit includes claims of conversion, unjust enrichment, breach of fiduciary duty, and computer fraud.
Conduit argues that the freeze of its treasury wallet by Tether has severely impacted its business operations, forcing layoffs and closures due to liquidity issues while Tether continues to earn interest on the frozen funds’ backing reserves.
This case highlights ongoing scrutiny over Tether’s authority to freeze USDT at will without clear justification or external requests from law enforcement agencies like Brazil’s Federal Police in this instance. (Source)
