Tether Sued Over Alleged Unlawful Freeze of $42.4 Million in USDT
What happened: Two Thai businessmen, Nutthawat Rukthammachalern and Natthawat Kasamvilas, filed suit in the U.
What happened: Two Thai businessmen, Nutthawat Rukthammachalern and Natthawat Kasamvilas, filed suit in the U.S. District Court for the Southern District of New York, alleging Tether blacklisted ten Ethereum addresses holding $42.4 million in USDT on October 30, 2025. The freeze, they claim, was carried out at the informal verbal request of a Homeland Security Investigations (HSI) agent, months before a formal seizure warrant was signed on February 19, 2026. Tether maintains the lawsuit is a "baseless attempt to interfere with Tether's important work with global law enforcement."
Why it matters: The case spotlights the power stablecoin issuers wield to freeze assets, even in the absence of a court order, and raises questions about due process in digital asset enforcement. The plaintiffs never had Tether accounts and acquired their USDT on the secondary market, highlighting the risks for holders when issuers act preemptively. Tether claims cooperation with over 340 agencies globally, but this case could set a precedent for how and when stablecoins can be frozen.