Conduit Sues Tether Over Frozen $2.76M USDT Wallet
- Conduit Technology has filed a federal lawsuit against Tether over a $2.76 million USDT freeze lasting more than a year.
- The freeze was initiated by Tether’s financial crime unit without any request from police authorities.
- Brazilian authorities confirmed that Conduit’s wallet was not identified for freezing in their investigation of another company.
- Conduit claims the freeze impacted its operations, leading to layoffs and office closures.
- The lawsuit includes claims of conversion, unjust enrichment, and breach of fiduciary duty, seeking damages and profits tied to Tether’s reserves.
Conduit Technology is challenging the legality of Tether’s unilateral decision to freeze its assets without police intervention, arguing this action severely disrupted its business operations. The case raises questions about the extent of power stablecoin issuers have over user funds.
The outcome of this lawsuit could set important precedents regarding the rights and limitations of stablecoin issuers like Tether in freezing assets without external directives from law enforcement agencies.(Source)
