Tether Sued Over $42 Million USDT Freeze Amid Government-Ordered Blacklist

Tether, the issuer of the USDT stablecoin, is facing a lawsuit in New York after two Thai businessmen accused the company of freezing their wallets without a warrant or court order.

Nutthawat Rukthammachalern and Natthawat Kasamvilas claim that Tether blacklisted 10 Ethereum addresses holding exactly $42.4 million in USDT on October 30, 2025, after receiving an informal request from the government.

The brothers argue that there was no warrant, court order, subpoena, or prior notice when the freeze happened and that they only found out about the restriction after trying to move the funds.