Tether Faces Lawsuit Over $2.76 Million USDT Freeze

Tether lawsuit — Tether is being sued by a payments firm for allegedly freezing $2.76 million worth of USDT stablecoins from its treasury wallet for over a year, according to a new legal filing.

The plaintiff, identified as a payments company, claims Tether unilaterally froze the wallet in October 2025, citing a Brazilian investigation. The lawsuit alleges the payments firm has no connection to the Brazilian probe and that Tether has profited from holding the reserves while refusing to release the funds.

The case highlights ongoing scrutiny over Tether’s centralized control and its power to freeze assets on its platform. The stablecoin issuer has previously frozen wallets linked to criminal investigations, but this lawsuit challenges the justification and financial impact of such actions on legitimate businesses.

The legal action seeks the return of the frozen $2.76 million in USDT. Tether has not yet publicly commented on the specifics of the lawsuit.