Cross-border payments platform Conduit Technology has filed a lawsuit against stablecoin issuer Tether in the US District Court for the Southern District of New York. The company claims that Tether froze $2,76 million in its treasury wallet in September 2025 without providing a justification.
According to the complaint, Conduit began holding these funds in May 2025. The company asserts that Tether has no legal entitlement to the assets and is denying access to them. Conduit states that this action has materially impacted its business operations and notes that multiple requests to unfreeze the funds have gone unanswered.
The lawsuit indicates that the freeze is linked to a 2024 investigation by Brazilian federal police into financial intermediaries Bull Intermediação de Negócios and Onix. Conduit alleges that Tether unilaterally identified its wallet as being connected to these entities and executed the freeze on September 24, 2025.
This legal action follows a separate case from August 2026, where two Thai nationals sued Tether over the freezing of $42,4 million in USDt. That incident was reportedly tied to a $61 million fraud case involving a seizure warrant issued by US authorities in February.
