Conduit sues Tether over allegedly freezing $2.8M without explanation
The lawsuit alleged that Tether froze USDt funds in a Conduit wallet tied to an investigation launched by Brazilian authorities in 2024.
Conduit Technology, a cross-border payments platform, has filed a lawsuit against Tether, an alleged stablecoin issuer, over the freezing of $2.76 million in USDt (USDT) without any explanation. The lawsuit, filed in the US District Court for the Southern District of New York, claims that Tether froze these funds from Conduit's digital treasury wallet on September 24, 2025, despite Conduit having "no legal entitlement" or "claim" to them.
Conduit maintains that Tether arbitrarily took the funds, disrupting their business operations. The company asserts that Tether's decision to freeze the funds was connected to a Brazilian federal police investigation launched in 2024 involving financial intermediaries Bull Intermediação de Negócios and Onix. Conduit alleges that Tether identified its treasury wallet as linked to these companies "on its own initiative using its own criteria."
Conduit has repeatedly requested Tether to unfreeze the funds but has received no response as of the lawsuit filing.
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