Tether Sued Over Frozen 'Pig Butcher' Coins

Two Thai businessmen have sued Tether in a New York district court for allegedly illegally freezing $42.4 million in USDT in October 2025, as part of a broader case tied to a pig butchering scheme.

The plaintiffs claim that Tether's actions were unauthorized and without a warrant until February 2026, when authorities issued a seizure warrant directing the burn and reissuance of the tokens to a government wallet.

The lawsuit tests the freezing authority of stablecoin issuers and is separate from the businessmen's involvement in the investment scam.