Tether Sued Over Alleged Freeze of $42.4 Million in USDT

Two Thai businessmen have sued Tether for allegedly freezing $42.4 million in USDT without legal authority.

The complaint, filed in the U.S. District Court for the Southern District of New York, claims that Tether blacklisted ten Ethereum addresses at the informal request of a Homeland Security Investigations agent last October.

A federal magistrate judge in North Carolina later issued a seizure warrant outlining a plan for Tether to burn the restricted tokens and mint replacement USDT.

Tether has maintained that it works with law enforcement agencies to prevent illicit activity, but the plaintiffs argue that the warrant did not retroactively authorize the freeze or permit Tether to destroy the original tokens.