USDT
+0.0%Conduit sues Tether over $2.76 million in frozen USDT
Image: Crypto BriefingCross-border payments firm Conduit filed a federal lawsuit against Tether on October 5, 2026, in the US District Court for the Southern District of New York. Conduit alleges Tether's T3 Financial Crime Unit froze roughly $2.76 million of its USDT in September 2025 without warning or legal authority. The firm says it was not the target of any related investigation, and Tether had not responded to the allegations as of October 6, 2026.
Key points
- Tether froze $2.76 million of Conduit's USDT in September 2025 without prior notice.
- Conduit claims it was not the target of the investigation tied to the frozen funds.
- Conduit seeks at least $2.76 million in compensatory damages and additional relief.
Why it matters
The lawsuit highlights risks for USDT holders facing unannounced asset freezes. It also raises questions about Tether's authority to freeze user funds without clear legal justification.
Price context · USDT
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Now
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7 days · dashed line = publication
Sources · 5 publishers
The Block
Tier 1
Conduit sues Tether over $2.76 million freeze, says it has ‘no legal entitlement’ to funds
Protos
Tier 2
Conduit sues Tether over $2.8M USDT freeze
The Defiant
Tier 1
Conduit Sues Tether Over $2.76 Million in Frozen USDT
Decrypt
Tier 1
Tether Hit With Lawsuit Over $2.76 Million Stablecoin Freeze
Coverage timeline
- First reported by Crypto Briefing
- Confirmed by The Block
- CryptoVideos brief published
- 2 more publishers added to sources
How this brief was made. Our system found this event in 5 independent publications, summarised two complete reports with AI and checked every number above against the source text. Sources are linked in full. Not financial advice. Report an error
