Tether Freeze Case Challenged by Thai Businessmen

Two Thai businessmen have filed a lawsuit against Tether, challenging the company's authority to freeze $42.4 million in USDT tokens.

The plaintiffs argue that Tether had no legal right to freeze the funds months before any judge signed off on the move.

According to the complaint, Tether blacklisted ten Ethereum addresses holding 42,417,785.62 USDT on October 30, 2025, after an informal request from a Homeland Security Investigations agent.

The formal seizure warrant did not arrive until February 19, 2026, issued by a magistrate judge in the Eastern District of North Carolina.

The plaintiffs are seeking declaratory judgment, an injunction, damages, and punitive damages, arguing Tether kept earning reserve yield while their funds sat frozen.