Chad Barraford, the technical co-founder of THORChain, reported that Tether blacklisted the network’s USDT vaults. This action affected four wallets, resulting in the temporary freezing of approximately 1.45 million USDT. According to Barraford, the funds were released and trading resumed about two hours after the initial report.
The network representatives stated that they received no prior communication from Tether regarding the decision. THORChain is currently attempting to contact the stablecoin issuer to clarify the situation and determine if the freeze was a result of an error or a misunderstanding. Tether has not yet provided a public response to the incident.
This event follows other recent legal challenges involving Tether. Earlier this week, Conduit Technology filed a lawsuit against the company, alleging that Tether froze USDt worth 2.76 million USD tied to a 2024 investigation by Brazilian authorities. Additionally, in August, two Thai nationals sued Tether over the freezing of 42.4 million USDt, citing an informal request from US Homeland Security Investigations.
