$42M USDT Freeze Sparks Lawsuit Against Tether
Thai investors Nutthawat Rukthammachalern and Natthawat Kasamvilas have filed a lawsuit against Tether, alleging that the stablecoin issuer unjustly froze $42.4 million in USDT from their Ethereum addresses without a valid warrant.
The freeze occurred on October 30, 2025, but a seizure warrant wasn't issued until February 19, 2026, nearly four months later. The warrant was tied to a separate case involving a pig-butchering investment scam investigation in North Carolina.
The plaintiffs claim they weren't involved in the scam and had no notice of the freeze until after their funds were locked. They're seeking declaratory relief, an injunction, damages, disgorgement of any income Tether earned on reserves backing the frozen tokens, and punitive damages.