Crypto
Tether Faces Lawsuit Over $42M USDT Freeze Without Legal Authorization
Two Thai businessmen have filed a lawsuit against Tether in New York's federal court system, alleging that the digital currency company illegally froze $42.4 million worth of USDT without proper legal backing.
The freeze was implemented on October 30, 2025, following an informal communication from a Homeland Security Investigations official.
Tether allegedly blacklisted ten Ethereum wallet addresses containing 42,417,785.62 USDT using its smart contract feature, addBlackList.
The complainants claim they acquired the digital tokens through secondary market transactions and never established a direct business relationship with Tether.