Conduit has sued Tether for freezing $2.76 million in USDT without explanation

Conduit Technology, a cross-border payments platform, filed a lawsuit against the issuer of the stablecoin Tether, alleging that in September 2025, Tether froze $2.76 million in USDT belonging to Conduit without explanation. The lawsuit was filed in the U.S. District Court for the Southern District of New York on October 6, 2026. ([cointelegraph-ru.com](https://cointelegraph-ru.com/news/conduit-lawsuit-tether-usdt-freeze?utm_source=openai)) According to Conduit’s statement, the company began holding USDT in its digital treasury wallet in May 2025. However, in September of that same year, Tether froze all funds without providing a justification, which significantly impacted Conduit’s operations. The company asserts that Tether has no legal claim to these funds and has not filed any claims. ([cointelegraph-ru.com](https://cointelegraph-ru.com/news/conduit-lawsuit-tether-usdt-freeze?utm_source=openai)) The lawsuit also notes that the freezing of funds is related to an investigation launched by Brazilian federal authorities in 2024 into the financial intermediaries Bull Intermediação de Negócios and Onix. Tether allegedly independently identified Conduit’s treasury wallet as being linked to these companies and froze the funds on September 24, 2025. Conduit claims that its wallet was not designated for freezing by Brazilian police and that Tether acted on its own initiative, using its own criteria. ([cointelegraph-ru.com](https://cointelegraph-ru.com/news/conduit-lawsuit-tether-usdt-freeze?utm_source=openai)) Conduit has repeatedly requested that Tether unfreeze the funds, but had not received a response as of the filing of the lawsuit. The company is demanding the return of the frozen funds, compensation for damages of at least $2.76 million, as well as reimbursement for all interest, income, and profits earned by Tether from these funds. ([cointelegraph-ru.com](https://cointelegraph-ru.com/news/conduit-lawsuit-tether-usdt-freeze?utm_source=openai)) This case underscores the importance of transparency and compliance with legal procedures in the field of cryptocurrency transactions, especially when interacting with regulatory authorities in various jurisdictions.