Tether Sued Over $42.4 Million of Frozen USDT Following Informal Request from U.S. Government

Two Thai businessmen, Nutthawat Rukthammachalern and Natthawat Kasamvilas, have sued Tether in Manhattan federal court over $42.4 million of frozen USDT.

The funds were blacklisted across 10 Ethereum addresses, all of which were frozen in a single two-and-a-half-minute batch on October 30, 2025.

Tether's terms of service allow the company to freeze tokens 'as required by applicable Law or where Tether, in its sole discretion, determines it is prudent to do so.'

The plaintiffs claim that they bought their USDT on the secondary market and have no contract with Tether at all.