Tether Sued Over $42.4 Million Frozen USDT Allegedly Seized Without Warrant
Two Thai businessmen are suing Tether in federal court over $42.4 million of frozen USDT, alleging that the company blacklisted their Ethereum addresses on a verbal request from a Homeland Security agent without a warrant or notice.
The lawsuit claims that the tokens were held in ten Ethereum addresses, nine belonging to Nutthawat Rukthammachalern and one to Natthawat Kasamvilas. Tether allegedly blacklisted these addresses on October 30, 2025, after receiving an informal request from a Homeland Security agent.
A federal magistrate judge in North Carolina did not sign a seizure warrant until February 19, 2026. The complaint states that the warrant outlined a plan for Tether to burn the frozen USDT, mint new tokens, and transmit them to a government-controlled wallet.