Tether Sued for Illegally Freezing Millions in USDT

Two Thai entrepreneurs have taken Tether to court in New York federal court over allegations that the stablecoin issuer illegally froze $42.4 million worth of USDT across ten Ethereum wallets in October 2025.

The freeze reportedly followed an informal request from a Homeland Security agent, and the plaintiffs claim they were not warned or given legal justification for the action.

A seizure warrant was issued months later in February 2026, ordering Tether to destroy the frozen tokens and transfer equivalent amounts to a government-controlled wallet linked to fraud investigations.