Thai Businessmen Sue Tether Over Frozen $42M USDT

Two businessmen from Thailand have filed a lawsuit against Tether after the stablecoin issuer froze over 42 million dollars worth of USDT in their wallets. The plaintiffs argue that Tether acted on an informal request from a United States government agent rather than a formal warrant or legal document. They claim they have no contract or prior relationship with the company.

According to the court filing, the assets were frozen on October 30, 2025. A formal seizure warrant did not arrive until more than three months later. The lawsuit highlights Tether's ability to use its on chain blacklist feature to block specific Ethereum addresses at will. Technical analysis confirms that Tether can initiate these freezes preemptively while investigations are still in progress.

The plaintiffs are now seeking restitution for the frozen funds and any profits Tether may have earned from the reserves linked to those tokens during the freeze. This case draws attention to the power stablecoin issuers hold over user assets and the lack of traditional legal process often involved in these actions. Traders should watch this case closely, as it could set a precedent for how centralized issuers handle government requests regarding user funds.