Thai Businessmen Sue Tether Over $42M USDT Freeze

Thai businessmen have filed a lawsuit against Tether in the U.S., claiming $42.4 million worth of USDT was frozen without a warrant or court order.

The case, lodged in the Southern District Court of New York on August 31, 2026, alleges that Tether froze the funds after receiving an informal request from a government agent on October 30, 2025. The plaintiffs argue this action was unlawful and that they were denied access to their business capital.

Tether allegedly used its 'addBlackList' command in the USDT smart contract to freeze the addresses, and later destroyed the funds under a seizure warrant obtained by the U.S. Attorney's Office for the Eastern District of North Carolina on February 19, 2026.