Thai Businessmen Sue Tether Over $42.4M USDT Freeze Linked to Pig-Butchering Case
Two Thai businessmen have sued Tether in the Southern District of New York over the freeze of $42.4 million in USDT. The plaintiffs, Nutthawat Rukthammachalern and Natthawat Kasamvilas, claim that Tether blacklisted their Ethereum addresses without a warrant or court order after receiving an informal request from the US Department of Homeland Security (HSI).
The funds appear to be connected to an HSI investigation into pig-butchering case proceeds. A total of 42.4 million USDT was frozen, with one wallet holding about $26.1 million.
Tether has defended its actions, stating that the lawsuit is a 'baseless attempt to interfere' with their work with law enforcement agencies. The plaintiffs, however, argue that Tether is profiting from the freeze by using the US dollars received when minting USDT to purchase interest-bearing financial instruments.