Tether Sued for Freezing $42M in USDT Before Authorities Had Warrant

Tether faces a federal lawsuit after two Thai businessmen claimed that the stablecoin issuer froze $42.4 million in USDT nearly four months before authorities obtained a seizure warrant.

The plaintiffs, Nutthawat Rukthammachalern and Natthawat Kasamvilas, filed the complaint on August 31 in the Southern District of New York.

The men alleged that Tether blacklisted 10 Ethereum addresses holding $42,417,785.62 USDT on October 30, 2025, without a valid legal basis for the freeze.

A North Carolina magistrate judge issued a seizure warrant on February 19, 2026, directing Tether to burn the tokens and reissue them to a government wallet.