Tether Sued Over $42M USDT Freeze Made on Informal Request
Tether, the stablecoin issuer, is facing a federal lawsuit over allegations that it blacklisted 10 Ethereum addresses containing $42.4 million in USDT on October 30, 2025.
The plaintiffs claim that Tether acted after receiving an informal request from a Homeland Security Investigations agent, rather than a warrant, subpoena, or court order.
The lawsuit alleges that the blacklisting occurred before a related seizure warrant was obtained in February 2026, and that the later warrant cannot retroactively supply authority for the earlier freeze.
The plaintiffs are seeking to have the blacklist removed from the disputed addresses and to bar any burning or transfer of the USDT while the dispute remains unresolved. They also request damages and income they allege was earned on reserves backing the frozen tokens.