Tether · New York · Cointelegraph
Conduit sues Tether over allegedly freezing $2.8 million without explanation
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The lawsuit alleged that Tether froze USDt funds in a Conduit wallet tied to an investigation launched by Brazilian authorities in 2024.
Key facts
- Cross-border payments platform Conduit Technology alleged that stablecoin issuer Tether froze $2.76 million in USDt (USDT) without explanation in September 2025
- The lawsuit came about a month after two Thai nationals sued Tether for allegedly freezing $42.4 million in USDt following what they called an ”informal request” from US Homeland Security
- The lawsuit alleged that Tether froze USDt funds in a Conduit wallet tied to an investigation launched by Brazilian authorities in 2024
- According to the lawsuit, the freezing was connected to a Brazilian federal police investigation launched in 2024 into the financial intermediary Bull Intermediação de Negócios and Onix
Summary
Cross-border payments platform Conduit Technology alleged that stablecoin issuer Tether froze $2.76 million in USDt (USDT) without explanation in September 2025. In a complaint filed in the US District Court for the Southern District of New York on Monday, Conduit said that Tether froze funds belonging to the company to which it had “no legal entitlement” and “no claim.” The company said it began holding USDt as part of its digital treasury wallet in May 2025, alleging that Tether froze all $2.76 million of the stablecoin in September with “no justification”, an action Conduit claimed “materially impacted its business.
According to the lawsuit, the freezing was connected to a Brazilian federal police investigation launched in 2024 into the financial intermediary Bull Intermediação de Negócios and Onix.