Tether Accused of Freezing $42.4M USDT Amid Regulatory Scrutiny

Two Thai nationals have filed a lawsuit against Tether, the issuer of the USDT stablecoin, alleging that the company froze their $42.4 million in USDT without a court order and profited from the interest on the locked funds.

The freeze occurred after an informal request from U.S. Homeland Security, with a formal warrant issued months later linked to a scam investigation.

The plaintiffs argue that Tether acted without legal basis and seek the return of their funds plus interest.

This case highlights tensions between regulatory enforcement and stablecoin operations, as Tether has frozen nearly $6 billion in 2026 amid increased U.S. regulatory pressure.