Tether Sued After Freezing $42 Million in USDT

Two Thai businessmen have launched a lawsuit against Tether following the freezing of over 42 million USDT. The legal filing in the Southern District of New York reveals that Tether blacklisted ten Ethereum addresses holding the funds back in October of last year.

The plaintiffs claim that these assets were locked up well before any official seizure warrant existed. Onchain records confirm that the freeze took place on October 30, which the lawsuit argues occurred three months prior to the arrival of formal legal orders to seize the stablecoins.

This case highlights the power Tether holds as a central issuer to block transactions and restrict access to funds on the blockchain. Investors are watching this closely as it raises questions about how much control stablecoin issuers exert over private wallets and the timeline for compliance with law enforcement.