Tether Sued Over Alleged Unauthorized $42.4M USDT Freeze
Two Thai businessmen have filed a lawsuit against Tether in New York's U.S. District Court, challenging the stablecoin issuer's authority to freeze approximately $42.4 million worth of USDT.
The plaintiffs, Nutthawat Rukthammachalern and Natthawat Kasamvilas, claim that Tether acted without a warrant or court order when it blacklisted ten Ethereum addresses containing the frozen tokens on October 30, 2025.
The lawsuit argues that Tether's actions were unauthorized and that the company used its smart contract to freeze the funds. The plaintiffs also point out that while a later seizure warrant was issued in February 2026, it did not apply to their specific USDT holdings.
The case raises questions about the powers of stablecoin issuers to freeze user assets, particularly when they act on informal law-enforcement requests rather than formal judicial authorization.