Tether Sued Over Alleged Unlawful $42.4M USDT Freeze

Two Thai businessmen, Nutthawat Rukthammachalern and Natthawat Kasamvilas, have sued Tether in a New York court over the freezing of approximately $42.4 million worth of USDT.

The plaintiffs claim that Tether blacklisted their ten Ethereum addresses on October 30, 2025, without obtaining a warrant or court order.

A later seizure warrant was issued on February 19, 2026, but it only targeted tokens linked to alleged fraud, and not the specific $42.4 million in dispute.

The plaintiffs argue that Tether's freezing of their funds without proper authorization constitutes conversion, trespass to chattels, unjust enrichment, and other claims.