Conduit Technology, a cross-border payment platform, has filed a lawsuit against Tether in the Southern District of New York. The startup claims that Tether blocked access to 2.76 million USDT in September 2025 without providing a valid reason. The funds were held in a corporate wallet on the TRON network via Fireblocks.
According to the court filing, Tether linked the wallet to a Brazilian police investigation involving financial intermediaries Bull Intermediação de Negócios and Onix. However, Brazilian authorities confirmed they did not request the freeze and are unaware of the criteria used by Tether. Conduit asserts that its wallet was created after it ceased operations with the entities under investigation.
The plaintiff accuses Tether of unlawful asset retention, abuse of smart contract control, and breach of fiduciary duties. Conduit is seeking a jury trial to recover the frozen funds and obtain compensation for financial losses. Tether has refused to lift the restrictions, leading the startup to pursue legal action to regain access to its operational capital.
