Thai businessmen sue Tether for freezing $42M in $61M pig butchering case
The plaintiffs didn’t dispute their involvement in the pig butchering scam, but claimed that Tether did not have the authority to freeze the $42 million at the time.
Two Thai businessmen recently filed a lawsuit against stablecoin issuer Tether in a New York district court, alleging that Tether unlawfully froze $42.4 million in Tether USDt (USDT) in October 2025. The plaintiffs, who admitted to their involvement in a pig butchering scheme, contend that Tether did not have the legal authority to freeze the funds without a warrant.
US Homeland Security Investigations initially requested the seizure warrant for the funds in February 2026. The lawsuit not only questions the freezing authority of stablecoin issuers but also seeks the release of the funds and potential punitive damages. Corporate and intellectual property attorney Ariel Givner explained that the complaint asserts Tether locked secondary-market holders first and earned Treasury yield on the reserves before receiving a warrant to freeze, burn, and reissue the tokens.
In a related case, a Chinese and St. Kitts and Nevis national was sentenced to 20 years in prison for orchestrating a $73 million pig butchering scam in February.
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