Tether's $42.4 Million Freeze Gets Support from Ripple's Former CTO

Ripple's former CTO David Schwartz has publicly backed Tether in a court case over the freezing of $42.4 million.

The funds, held in 10 wallets containing USDT tokens, were frozen on October 30, 2025, following an informal request from U.S. Homeland Security Investigations (HSI) as part of a pig-butchering fraud scheme.

Schwartz argued that Tether's actions were administratively and legally justified, citing the principle of protection against double liability when there are competing claims to an asset.

'When the legality of ownership is in doubt,' Schwartz said, 'the issuer must keep the funds secure until a competent court issues its ruling.'