Conduit Sues Tether Over Frozen $2.76 Million USDT

Conduit Technology has filed a lawsuit against Tether after the stablecoin issuer froze $2.76 million in USDT without providing a valid justification. The cross-border payments platform claimed that Tether froze its treasury wallet holdings on September 24, 2024, citing an alleged link to a Brazilian Federal Police investigation into financial intermediaries Bull Intermediação de Negócios and Onix. Despite repeated requests, Conduit stated that Tether has refused to lift the freeze or return the funds.

In its complaint filed in the U.S. District Court for the Southern District of New York, Conduit argued that the funds belong to the company and that Tether has no legal right to block access. The lawsuit emphasizes that Tether cannot unilaterally seize assets simply because the company chose to hold its funds in USDT. The freeze has reportedly had a significant impact on Conduit's business operations.

This is not the first time Tether has faced legal action over frozen USDT. Earlier, two Thai nationals sued the company over the freezing of $42.4 million in USDT, which was allegedly tied to a $61 million pig-butchering fraud case. Tether has not yet responded to requests for comment on the latest lawsuit.