Lawsuit Claims Tether Frozen $42.4 Million USDT Ahead of Formal Warrant

In a new lawsuit, plaintiffs assert that Tether Ltd. froze approximately $42.4 million of its USDT stablecoin in response to an informal request from U.S. law‑enforcement agencies. The alleged action occurred more than three months prior to the issuance of a formal seizure warrant.

Alleged Timeline

The complaint states that Tether received an informal request from U.S. authorities and subsequently restricted the movement of the USDT tokens. A formal warrant was later issued, but the plaintiffs claim the freeze happened well before that official order.

Legal Implications

If the allegations are proven, the case could raise questions about the responsibilities of stablecoin issuers when faced with informal law‑enforcement inquiries and the extent of their compliance obligations.

Potential Impact on Users

Should the court find merit in the plaintiffs’ claims, it may set a precedent affecting how crypto firms handle pre‑warrant requests, potentially influencing user access to stablecoins during investigations.