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10/07/2026

Conduit Sues Tether Over $2.76M USDT Freeze, Citing Lack of Legal Grounds

What happened: Conduit Technology has filed a lawsuit in the US District Court for the Southern District of New York against four Tether entities, alleging that Tether froze $2.

Conduit Sues Tether Over $2.76M USDT Freeze, Citing Lack of Legal Grounds

What happened: Conduit Technology has filed a lawsuit in the US District Court for the Southern District of New York against four Tether entities, alleging that Tether froze $2.76 million in USDT from Conduit's treasury wallet without a court order or explanation. The freeze, which began in September 2025, is tied to a Brazilian police investigation into a former Conduit client, though Conduit claims the wallet was created after the client had left the platform.

Why it matters: The case could set a precedent for the limits of stablecoin issuers' power to freeze assets without judicial oversight. Tether has historically cited law enforcement cooperation, but critics argue that such unilateral freezes pose risks to users and the broader ecosystem. The outcome may influence how cross-border payments and stablecoin platforms manage compliance and user protections.

Source: The Block, Cointelegraph