Tether Sued Over Right to Freeze User Tokens

Tether is facing a lawsuit challenging its right to freeze and seize users' tokens. This comes as Circle, Tether's main rival in the stablecoin market, has signed a deal with Chelsea Football Club to become their official front-of-shirt partner.

The lawsuit was filed by two Thai nationals who claim that Tether froze $42.4 million worth of USDT at the request of U.S. authorities without any warrant or legal process. They argue that Tether is profiting directly from the freeze, as it continues to generate interest income on the frozen funds.

Tether has frozen billions' worth of USDT in response to requests from law enforcement agencies, but this lawsuit claims that the company's actions are unlawful and have resulted in significant financial losses for the plaintiffs. The case is being heard in the U.S. District Court for the Southern District of New York.