Tether Accused of Illegally Seizing $42 Million in USDT
Two men from Bangkok have filed multiple legal filings in federal court in New York and North Carolina, alleging that Tether improperly froze more than $42 million worth of USDT at the informal request of Homeland Security Investigations (HSI).
The lawsuit against four El Salvador-based entities of Tether claims that the funds were seized without a legitimate legal justification. The men, Nutthawat 'David' Rukthammachalern and Natthawat 'Peter' Kasamvilas, argue that they operate a legitimate authorized gaming promotion business.
According to their motion, the funds in question are related to 'VIP gaming experiences,' including transportation, food, and lodging for VIP customers at licensed casinos. The men also claim that they independently screened customers' USDT wallet addresses using commercially available tools.
The HSI affidavit alleges that Tether froze the funds at law enforcement's request despite lacking a specific legal basis to do so. Rukthammachalern and Kasamvilas argue that the seizure warrant ultimately filed fails to establish probable cause, citing a lack of tracing from a 'known scam consolidation wallet' to their wallets.