Cross-border payment platform Conduit Technology accused stablecoin issuer Tether of unfoundedly freezing $2.76 million in USDt ( USDT ) in September 2025.
In a complaint filed on Monday with the U.S. District Court for the Southern District of New York, Conduit claimed that Tether had frozen funds belonging to the company, which "have no legal entitlement" and "are not based on any claim." Conduit stated that the company began holding USDt as part of its digital treasury wallet in May 2025, and alleged that Tether froze all 2.76 million dollars in stablecoins in September without "any legitimate reason," claiming that this action "had a substantial impact on its business." Conduit considered this behavior to have "a material effect on its operations."
In the lawsuit, Conduit stated: 'There is no doubt that these funds belong to Conduit, but Tether took them and refused to allow Conduit to retrieve them.' The company also stated: 'Tether cannot take money from a company just because the company chose to deposit its funds in the currency of Tether.'
According to this lawsuit, the freeze action is related to an investigation initiated by the Brazilian Federal Police in 2024 targeting financial intermediaries Bull Intermedia, de, Neg, cios, and Onix. Conduit stated that Tether "determined on its own basis" that its wallet was associated with the aforementioned companies and froze $2.76 million on September 24, 2025.
Conduit indicates that I have repeatedly requested Tether to unfreeze the funds, but as of Monday, they still have not done so. Cointelegraph has thus contacted Tether to seek legal action, but no immediate response was received.
About a month later, a lawsuit occurred: two Thai citizens sued Tether, claiming that they froze $42.4 million USDT after the U.S. Department of Homeland Security made an "informal request." The funds in question were allegedly part of a $61 million "pig-killing scam" case; the case was filed in the U.S. District Court for the Eastern District of North Carolina, and in February, the court issued a warrant for the seizure of those funds against USDT.
Related reading: Tether indicates that this year, 550 million US dollars related to Iran have been assisted in being frozen. USDT
