Tether USDt

<h2 id="header-0">Key Facts</h2>
<ul>
 <li>Cross-border payments company Conduit Technology sued four Tether entities in US federal court in Manhattan over a wallet frozen on Sept. 24, 2025.</li>
 <li>Conduit is seeking an order to unfreeze the wallet, at least $2.76 million in damages and disgorgement of interest Tether earned on the reserves backing the frozen tokens.</li>
 <li>The complaint alleges Brazilian federal police told Conduit they never identified its wallet for freezing.</li>
</ul>
US payments company Conduit Technology has sued Tether, alleging the issuer froze $2.76 million of its Tether USDt (<a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/currencies/tether/">USDT</a>) more than a year ago without justification and has not released it.
The case challenges Tether's ability to freeze tokens at its own discretion, because Conduit says the Brazilian police Tether referred it to never identified its wallet for freezing, according to the <a target="_blank" rel="noopener noreferrer nofollow" href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.674398/gov.uscourts.nysd.674398.1.0.pdf">complaint</a> filed on Monday in the US District Court for the Southern District of New York.
<h2 id="header-1">Conduit Says Brazilian Police Never Flagged Its Wallet</h2>
Conduit ties the freeze to a Brazilian investigation that it says had nothing to do with the company. The Brazilian Federal Police began investigating individuals and entities related to Bull Intermediação de Negócios in June 2024, and Tether froze Conduit's treasury <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/glossary/wallet">wallet</a> alongside others tied to that probe, the filing says.<tweet-embed url="https://x.com/GivnerAriel/status/2107488354648330426?s=20"></tweet-embed>
"The Federal Police have confirmed not only that they did not identify Conduit's wallet for freezing, but also that they do not even know what evaluation criteria (if any) led Tether to freeze the funds," the complaint states.
Founded in 2021, Conduit runs a cross-border payments platform that lets companies move between <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/glossary/stablecoin">stablecoins</a> and local <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/glossary/fiat">fiat</a> currencies. It says the frozen wallet held only its own working capital.
<h2 id="header-2">Conduit Seeks Damages, Reserve Interest From Tether</h2>
The lawsuit asks the court to order the wallet unfrozen and to award damages.&nbsp;
Conduit also wants Tether to give up interest earned on the frozen tokens' backing. "Tether profits from the freeze: it continues to invest the U.S. dollar reserves backing the frozen tokens—predominantly in U.S. Treasury securities—and to earn interest on them," the complaint says.
Tether uses its freeze function in crime investigations. Investigator ZachXBT said this week that Tether froze 442,000 USDT linked to a cluster of Bybit exploit funds after <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/article/zachxbt-infiltrated-lazarus-linked-crypto-laundering-ring">he infiltrated a Lazarus-linked laundering ring</a>.
Tether said in August that <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/article/tether-completes-first-full-audit-as-kpmg-issues-clean-opinion-on-usdt">KPMG had issued a clean audit opinion on USDT</a>, covering Tether International's 2025 financial statements.
Read More:&nbsp;<a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/article/how-crypto-evolved-2026-wallets-stablecoins-stocks-ai">How Crypto Evolved in 2026: Wallets, Stablecoins, Stocks and AI</a>

Payments Firm Conduit Sues Tether Over $2.76M Frozen USDT Wallet

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