Tether Sued Over Alleged Illegal Freeze and Burning of $42.4M USDT
Two Thai nationals have filed a lawsuit against Tether in the U.S. District Court for the Southern District of New York, alleging the stablecoin issuer froze $42.4 million in USDT without a court order.
The plaintiffs, Nutthawat Rukthammachalern and Natthawat Kasamvilas, claim Tether used its smart-contract blacklist function on October 30, 2025, to freeze the funds held in their Ethereum addresses.
The complaint alleges that Tether continued to earn yield on reserve assets backing the frozen tokens throughout the period they remained immobilized, despite the unauthorized freeze.
The plaintiffs are seeking a declaration that the freeze and any burn or reissue are unauthorized, along with claims for conversion, trespass to chattels, and unjust enrichment.