Thai Nationals Sue Tether for $42.4M in Frozen USDT Funds

Tether's USDT stablecoin is facing a lawsuit from two Thai nationals who claim the issuer froze their $42.4 million worth of funds without proper notice or justification.

The plaintiffs, Nutthawat Rukthammachalern and Natthawat Kasamvilas, filed the lawsuit on August 31st in the Southern District of New York (SDNY) against Tether, alleging that the stablecoin issuer has been engaging in deceptive marketing practices.

The duo claims that Tether does not clearly disclose its ability to freeze USDT funds at any time and that it profits from the interest earned on frozen funds. They argue that their $42.4 million was seized without a warrant or court order, with the seizure warrant coming only three months later in February as part of an investigation into a pig butchering romance scam in North Carolina.

The lawsuit seeks to have Tether's seizure deemed unlawful and prevent it from destroying the plaintiffs' USDT funds. The duo also wants their frozen funds plus any earned interest income returned.