Conduit Technology, a platform for cross-border payments, filed a lawsuit against Tether in the US District Court for the Southern District of New York on October 5, 2026. The company claims that Tether blocked its treasury wallet, resulting in the loss of access to approximately $2,76 million in USDT starting from September 24, 2025.
The plaintiff alleges that the freeze was executed by Tether’s T3 Financial Crime Unit without prior notice or legal authority. Conduit states that it was not involved in the Brazilian Federal Police investigation linked to the freeze and that its wallet was not flagged during that probe.
The lawsuit names Tether Holdings, Tether International, Tether Operations, and Tether Investments S.A. de C.V. as defendants. Conduit is seeking a court order to unfreeze the assets, a declaratory judgment regarding Tether's lack of authority to block funds, and at least $2,76 million in compensatory damages.
Additionally, the company is requesting consequential damages and profits generated from the reserves backing the frozen tokens. As of October 6, 2026, Tether has not issued a response to the allegations, and the case remains in the initial complaint stage.
