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10/07/2026

Conduit Sues Tether Over $2.76M USDT Freeze, Seeks Damages

What happened: Payments firm Conduit has filed suit against Tether in New York federal court, alleging the USDT issuer froze $2.

Conduit Sues Tether Over $2.76M USDT Freeze, Seeks Damages

What happened: Payments firm Conduit has filed suit against Tether in New York federal court, alleging the USDT issuer froze $2.76 million in its treasury wallet in September 2025 without legal justification. Conduit claims the freeze, executed by Tether's financial crime unit, was unrelated to any ongoing Brazilian investigation and has caused significant business disruption, including layoffs and office closures. The firm seeks immediate unfreezing, damages, and profits allegedly earned on the reserves.

Why it matters: The case challenges Tether's broad authority to freeze funds and could set precedent for stablecoin issuer liability. As stablecoins become integral to global payments, the outcome may influence future issuer behavior and regulatory frameworks.

Source: The Block