Conduit Sues Tether Over Frozen 2.76 Million USDT
Cross-border payments firm Conduit Technology has filed a lawsuit against Tether in a Manhattan federal court, seeking to unfreeze a wallet containing $2.76 million in USDT that was frozen on September 24, 2025. The company is also demanding damages and the disgorgement of interest Tether allegedly earned on the reserves backing the frozen tokens.
Conduit claims the freeze was unjustified and ties it to a Brazilian investigation unrelated to the company. According to the complaint, Brazilian federal police confirmed they never identified Conduit's wallet for freezing and were unaware of Tether's criteria for the freeze.
The lawsuit argues that Tether profits from freezing assets by continuing to invest the backing reserves, primarily in U.S. Treasury securities, and earning interest. Conduit operates a platform that facilitates cross-border payments between stablecoins and local fiat currencies.
Tether's ability to freeze tokens has been highlighted recently, including in an investigation where the company froze 442,000 USDT linked to a Bybit exploit. Tether has also previously announced a clean audit opinion on USDT by KPMG for the year 2025.