Tether Accused of Unilaterally Freezing $42M USDT Before Court Order

A lawsuit has been filed against Tether in the U.S. District Court for the Southern District of New York, alleging that the company unilaterally froze over $42 million in USDT belonging to two investors nearly four months before a court-issued seizure warrant was formally issued.

The incident occurred on October 30, 2025, when Tether blacklisted 10 Ethereum addresses without prior notice or formal legal documentation. The court warrant for the lawful seizure of assets wasn't officially approved and issued until February 19, 2026.

According to the plaintiff, they were involved in an investigation into a $17 million 'pig butchering' investment scam in North Carolina, USA, but had never participated in any fraudulent activity. The freezing of their funds was deemed collateral damage and misidentification in law enforcement coordination.