Tether Is Facing Lawsuit Over Alleged $2,760,000 USDT Freeze Without Justification
A cross-border payments company is accusing Tether of seizing millions from its digital wallet without justification or notice.
Conduit alleges Tether froze the entire $2.76 million balance in its Fireblocks USDT wallet on its own initiative.
Conduit Technology, Inc. stored the working capital in May 2025, and the wallet processed 4,427 transactions totaling over $1.1 billion across 78 counterparties before the freeze.
The lawsuit alleges that Tether has provided no justification for the action and has instead referred Conduit to the Brazilian Federal Police.
“The Federal Police confirmed that they had previously identified certain wallets that they requested Tether to freeze, in connection with an investigation into a third party, Onix Intermediações Ltda. (‘Onix’), which at one point in time used Conduit’s platform. But Conduit’s treasury wallet was never used by Onix, does not hold any Onix funds, and has never held any Onix funds.”
According to the lawsuit, the Federal Police confirmed they did not request the freeze and that the Brazilian Criminal Court said Conduit is not under investigation. Conduit claims its treasury wallet did not even exist when Onix last used its platform in April 2025.
“In fact, Conduit’s treasury wallet did not even exist when Onix was using Conduit’s platform.”
The suit alleges Tether is profiting from interest on the reserves while denying access for more than a year.
“Tether is reaping the financial rewards of its unjustifiable taking of Conduit’s money.”
Conduit seeks recovery of the funds, a declaration that Tether has no right to withhold them and to hold the stablecoin firm accountable for the harm its unlawful conduct has caused and continues to cause.
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