Conduit Sues Tether Over Frozen 2.8 Million 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. The complaint, filed in the US District Court for the Southern District of New York, claims Tether had no legal entitlement to the funds. Conduit began holding USDt in its digital treasury wallet in May 2025, but Tether froze all the funds on September 24, 2025, citing a connection to a Brazilian federal police investigation into financial intermediary Bull Intermediação de Negócios and Onix.

Conduit argues that Tether acted unilaterally, identifying the treasury wallet as tied to the investigated companies using its own criteria. The company stated that it repeatedly requested the funds be unfrozen but had not received a response as of the lawsuit filing. Conduit claims the freezing of funds materially impacted its business and accused Tether of taking money from businesses without justification.

The lawsuit follows another recent case where two Thai nationals sued Tether for freezing $42.4 million in USDt, allegedly at the request of US Homeland Security Investigations. Tether has not yet responded to Cointelegraph's request for comment on the latest lawsuit.