Thai Businessmen Sue Tether Over $42M USDT Freeze Linked to Pig-Butchering Case

Two Thai businessmen, Nutthawat Rukthammachalern and Natthawat Kasamvilas, have sued Tether in the Southern District of New York over a $42.4 million USDT freeze. The men claim that Tether blacklisted their Ethereum addresses without a warrant or notice in late October 2025 after receiving an informal request from a Department of Homeland Security agent.

The funds are connected to an investigation into a pig-butchering case, where victims were scammed out of their USDT through fake trading platforms and romance schemes. A wallet linked to the plaintiffs had $26.1 million and was identified as a consolidation address in a flow described as 'accumulate, layer, integrate.'

On February 19, 2026, a warrant was issued for the funds, directing Tether to burn the frozen USDT and remint them into a government wallet. However, the plaintiffs argue that Tether had no authority to freeze their tokens, which they claim were purchased on the secondary market.

Tether has defended its actions, stating that it is working with law enforcement to prevent unlawful use of USDT. The stablecoin issuer claims that the lawsuit is a 'baseless attempt to interfere' with its work.