Tether Hit With Lawsuit Over $2.76 Million Stablecoin Freeze
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Cross-border payments company Conduit is taking Tether to court, alleging the stablecoin giant froze $2.76 million of its money without justification and has refused for more than a year to release it.
Key facts
- Tether was separately sued this year over a $42.4 million freeze, and the company has frozen hundreds of millions in tokens flagged for illicit activity
- Cross-border payments company Conduit is taking Tether to court, alleging the stablecoin giant froze $2.76 million of its money without justification and has refused for more than a year to release it
- But Conduit says its frozen treasury wallet was created in May 2025, nearly a month after Onix's last transaction on its platform, and never held any Onix funds
- Richard Blumenthal recently called USDT a "superhighway" for sanctions evasion, pointing to Iran’s use of the stablecoin
Summary
Conduit sued Tether in New York federal court, alleging the stablecoin issuer froze $2.76 million in its treasury wallet on Sept. 24, 2025, without justification and has refused to release it. The firm says a Brazilian police probe into a third party, Onix, was the backdrop, but its wallet was created after - Onix's last transaction, never held Onix funds, and was flagged by Tether's own unit—not police. In a complaint filed Monday in the U.S. District Court for the Southern District of New York, Conduit says Tether froze its treasury wallet, the digital equivalent of its operating bank account, on Sept. 24, 2025, and has since kept the funds locked while profiting from the reserves backing them.