Tether Is Facing Lawsuit Over Alleged $2,760,000 USDT Freeze Without Justification
Key Summary
Tether is facing a lawsuit alleging the company seized $2.76 million in USDT from Conduit's digital wallet without justification or notice. Conduit claims Tether's freeze is unjustified and profits from interest on the reserves while denying access for over a year. The lawsuit seeks recovery of the funds and holds Tether accountable for the harm caused.
#Background Conduit Technology, Inc. stored $2.76 million in its Fireblocks USDT wallet in May 2025. The wallet processed 4,427 transactions totaling over $1.1 billion across 78 counterparties before the freeze.
##The Alleged Freeze Conduit alleges Tether froze the entire balance on its own initiative without justification or notice. The company claims Tether has provided no explanation for the action and has instead referred Conduit to the Brazilian Federal Police.
##The Investigation and Conduit's Response The Federal Police confirmed 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 was using Conduit's platform at one point in time. However, Conduit's treasury wallet was never used by Onix and did not hold any Onix funds.
##Conduit's Lawsuit Conduit claims it is profiting from interest on the reserves while denying access to its funds for more than a year. The company seeks recovery of the funds, a declaration that Tether has no right to withhold them, and holds Tether accountable for the harm its unlawful conduct has caused and continues to cause.
##Next Steps The lawsuit seeks a resolution and highlights the need for greater transparency and accountability in the cryptocurrency industry. As the cryptocurrency market continues to evolve, it is essential to address issues such as unjustified freezes and ensure that companies operate with integrity and fairness.