Thai businessmen challenge Tether over $42.4m USDT freeze

Two Thai businessmen, Nutthawat Rukthammachalern and Natthawat Kasamvilas, have filed a lawsuit against the stablecoin issuer Tether in a New York court. They allege that Tether froze approximately $42.4 million worth of USDT tokens in October 2025, months before US authorities obtained a seizure warrant. The plaintiffs claim that Tether acted on an informal request from a Homeland Security Investigations (HSI) agent, without a formal warrant, subpoena, or court order.

The lawsuit centers on the timing and legal basis of the freeze and the plaintiffs' ownership claims to the disputed tokens. Tether's terms of service permit the company to freeze or blacklist tokens in its sole discretion where it determines they are subject to prohibited use or where it deems the action prudent. The businessmen contend that they purchased the USDT on the secondary market and had no contractual relationship with Tether, questioning whether the company could rely on its terms of service.

If successful, the plaintiffs seek the restoration of access to the disputed assets, damages, and recovery of income they claim Tether earned from reserves backing the frozen USDT.