$42M Tether Freeze Lawsuit Tests Stablecoin Seizure Law

Nutthawat Rukthammachalern and Natthawat Kasamvilas, two Thai businessmen, have filed a lawsuit against Tether in the U.S. District Court for the Southern District of New York.

The plaintiffs claim that $42.4 million worth of their USDT tokens were frozen by Tether without a court order on October 30, 2025.

The complaint names four entities based in El Salvador as defendants and argues that the company acted improperly by blocking the tokens after an informal request from a Homeland Security Investigations agent.

The plaintiffs argue that a verbal request from a single agent cannot justify a Tether USDT freeze action, since it is not a legal process.