Tether Hit With Lawsuit Over $2.76 Million Stablecoin Freeze
Cross-border payments firm Conduit sued Tether in New York, alleging Tether unjustifiably froze $2.76 million in its treasury wallet in September 2025 and has refused to release the funds. Conduit says the wallet had no connection to a Brazilian police investigation involving a former platform user, and that authorities never flagged it. The company claims the freeze damaged its business, forcing layoffs and office closures, while Tether continues earning interest on reserves backing the locked tokens. The lawsuit seeks repayment and alleges conversion, unjust enrichment, breach of fiduciary duty and computer fraud. The case adds to scrutiny of Tether’s authority to freeze USDT, amid other freezes, lawsuits and criticism over sanctions enforcement.
