Tether Sued Over $42.4M USDT Freeze Without Court Warrant

Thai businessmen have filed a lawsuit against Tether in the U.S. District Court for the Southern District of New York, claiming that the company froze $42.4 million worth of USDT without a court warrant.

The freeze occurred on October 30 last year, after an informal request from a U.S. Homeland Security Investigations agent.

Tether blacklisted the address in question, but the plaintiffs argue that this was done without proper legal oversight and that the subsequent seizure warrant did not grant Tether the authority to freeze or burn the tokens.

The lawsuit seeks to lift the freeze, block any burn of the USDT, recover damages, and force Tether to disgorge interest income allegedly earned on the reserves backing the frozen tokens.