Tether Faces Legal Action Over Alleged Unauthorized Asset Freeze

Two Thai businessmen have filed a lawsuit against Tether in the US District Court for the Southern District of New York, alleging that $42.4 million in USDT was frozen without proper legal authorization.

The plaintiffs claim that no court order or warrant was issued to freeze the assets, and that Tether lacked the authority to do so based on informal requests from U.S. authorities, specifically Homeland Security Investigations.

According to attorney Ariel Givner, this lawsuit challenges Tether's ability to freeze wallets without proper legal justification.

The case has significant implications for how cryptocurrency companies interact with government requests and handle user assets in such situations.