Conduit Sues Tether for Allegedly Freezing $2.8M in USDT

Conduit Sues Tether — Cross-border payments firm Conduit Technology has filed a lawsuit against Tether, alleging the stablecoin issuer froze $2.76 million of its USDT without justification.

The complaint, filed in the U.S. District Court for the Southern District of New York on October 5, 2026, states Tether froze the funds in a Conduit treasury wallet on September 24, 2025. Conduit claims the freeze, which it says has materially impacted its business, was done with “no legal entitlement” and without explanation.

According to the lawsuit, Tether linked Conduit’s wallet to a 2024 Brazilian federal police investigation into two other companies, Bull Intermediação de Negócios and Onix. Conduit alleges Tether made this connection “on its own initiative using its own criteria” and has refused repeated requests to unfreeze the assets.

The legal action follows a separate lawsuit filed last month by two Thai nationals who allege Tether froze $42.4 million in USDT following an informal request from U.S. Homeland Security Investigations.