Tether Sued Over $42M USDT Freeze Without Warrant or Court Order

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 $42.4 million in USDT on October 30, 2025, after receiving an informal request from authorities.

The brothers argue that there was no prior notice or court order when the freeze happened, and they only found out about it when Kasamvilas tried to move the funds and was directed by Tether to an HSI email address.