Tether Sued Over Frozen USDT Linked to Pig‑Butchering Scam as Asian Crypto Landscape Shifts

Two Thai businessmen have taken stablecoin issuer Tether to court in the U.S. District Court for the Southern District of New York, alleging that the company froze $42.4 million worth of USDT in October 2025 without a warrant. The freeze was reportedly triggered by an informal request from U.S. Homeland Security Investigations and preceded a seizure warrant issued by a North Carolina court in February 2026.

Legal challenge tests stablecoin freezing powers

The plaintiffs acknowledge their involvement in a broader pig‑butchering fraud but argue that Tether exceeded its authority by immobilising the tokens before a court order was obtained. The case could set precedent for how stablecoin issuers respond to law‑enforcement requests.

Regulatory updates across Asia

Thailand’s Securities and Exchange Commission is introducing Travel Rule requirements for digital‑asset operators, mandating collection of sender and receiver information for crypto transfers, including those involving self‑custodial wallets. The rules are slated to take effect on 27 February 2027.

In Australia, the Australian Securities and Investments Commission has warned unlicensed crypto firms that they must apply for an Australian Financial Services licence by 30 September or face fines of up to 10 % of annual turnover. More than 45 licence applications have been recorded so far.

Singapore’s Monetary Authority is reconsidering its stance on foreign‑issued stablecoins, proposing a framework that could recognise jointly issued tokens as “MAS‑regulated stablecoins” and potentially allow a limited number of foreign stablecoins that meet comparable regulatory standards.

On‑chain lending and custody developments

Pencil Finance completed a $1 million on‑chain loan cycle for 6,600 students across 118 schools in Southeast Asia, providing direct funding to about 1,050 borrowers, half of whom are female and most from lower‑income households.

Ripple announced a partnership with SettleMint to deliver end‑to‑end tokenised‑asset solutions for financial institutions, while Japan’s Coincheck Group teamed up with DFNS to build wallet and custody infrastructure.

Other notable moves

• Standard Chartered launched spot Bitcoin and Ether trading for institutional clients in the UAE, becoming the first global systemically important bank to offer such services in the region.
• Japan’s Remixpoint sold all its altcoin holdings, retaining only Bitcoin, and reported a modest gain on the transactions.
• Hashkey joined the DTCC Digital Assets Advisory Services Industry Working Group, marking the first Asian crypto service provider in the group.