Conduit Sues Tether Over Frozen $2.8 Million in USDt
Cross-border payments platform Conduit Technology has filed a lawsuit against Tether, alleging that the stablecoin issuer froze $2.76 million in USDt (USDT) without explanation in September 2025. According to the complaint filed in the US District Court for the Southern District of New York, Conduit claims that Tether froze funds to which it had “no legal entitlement” and “no claim.” The company began holding USDt as part of its digital treasury wallet in May 2025, but Tether froze all $2.76 million of the stablecoin in September with “no justification,” an action Conduit claimed “materially impacted its business.”
Conduit alleged that the freezing was connected to a Brazilian federal police investigation launched in 2024 into the financial intermediary Bull Intermediação de Negócios and Onix. Tether allegedly identified Conduit’s treasury wallet as tied to these companies “on its own initiative using its own criteria,” freezing the $2.76 million on Sept. 24, 2025. Conduit said it had repeatedly asked Tether to unfreeze the funds, but the company had not done so as of Monday.
The lawsuit comes about a month after two Thai nationals sued Tether for allegedly freezing $42.4 million in USDt following what they called an ”informal request” from US Homeland Security Investigations. The funds were allegedly part of a $61 million pig butchering case filed in US District Court for the Eastern District of North Carolina, which issued a seizure warrant for the USDt in February.