Tether Gets Support from Ripple's David Schwartz in $42M Pig-Butchering Freeze Lawsuit
Ripple's David Schwartz has publicly defended Tether in a landmark lawsuit over the freezing of $42.4 million. The funds, held in 10 wallets containing 42,417,785.62 USDT, were frozen on October 30, 2025, following an informal request from U.S. Homeland Security Investigations (HSI) related to an international pig-butchering fraud scheme.
Schwartz cited the principle of protection against double liability when there are competing claims to an asset, stating that Tether acted correctly by holding the funds secure until a competent court issued its ruling.
The plaintiffs claim they acquired the tokens on the secondary market in good faith and are demanding compensation for lost profits, including interest income earned from managing the reserves backing those funds.
Schwartz emphasized that ignoring HSI's warning would have allowed the fraudsters to move the $42.4 million through mixers, potentially exposing Tether to accusations of facilitating money laundering and subsequent criminal prosecution in the United States.