Thai Businessmen Sue Tether Over Frozen USDT in Pig Butchering Case
Two Thai businessmen have taken Tether to court in New York, alleging that it illegally froze $42.4 million in Tether USDt (USDT) last October. The freeze was part of a broader investigation into a pig butchering scheme worth $61 million.
The case involves authorities from the Eastern District of North Carolina, who issued a seizure warrant for the funds in February 2026. However, the plaintiffs claim that Tether froze the USDT without a warrant in October 2025, following an informal request from US Homeland Security Investigations.
The lawsuit tests the freezing authority of stablecoin issuers and seeks to have the funds unfrozen and potential punitive damages paid. The plaintiffs acknowledge their involvement in the investment scam but dispute Tether's actions.