Conduit Sues Tether for $5.52 Million Over Frozen USDT

Tether, the issuer of the popular stablecoin USDT, is facing a lawsuit from Conduit over the freezing of $2.76 million in USDT. The company claims the funds have been locked for over a year without any order from Brazilian authorities, disrupting its operations.

Conduit is seeking the return of the frozen USDT as well as $2.76 million in damages, totaling $5.52 million. The company argues that the frozen funds were essential for its operations, functioning similarly to an operating bank account.

The dispute centers on the legitimacy of the freeze, with Conduit asserting that no Brazilian authorities ordered the restriction. Tether’s actions have become the focal point of the legal battle, as Conduit challenges the continued inaccessibility of the funds.

The case highlights broader issues surrounding the control and accessibility of cryptocurrency assets, particularly stablecoins like USDT. Conduit’s lawsuit seeks not only the release of the frozen funds but also compensation equal to the amount locked.