Tether Faces Lawsuit Over Alleged Unlawful Freeze of $42.4 Million USDT

Two Thai businessmen, Nutthawat Rukthammachalern and Natthawat Kasamvilas, sued Tether in New York federal court on Monday over an alleged unlawful freeze of $42.4 million worth of USDT.

The company claims it blacklisted the addresses at the informal request of a Homeland Security Investigations agent last October without a warrant or court order.

A federal magistrate judge later issued a seizure warrant in North Carolina outlining a plan for Tether to burn the restricted tokens, mint replacement USDT, and transfer them to a government-controlled wallet.

The plaintiffs argue that this warrant neither retroactively authorized the freeze nor permitted Tether to destroy the original tokens before a final forfeiture judgment.