CoinDesk
Two Thai businessmen sued Tether over 42.4 million USDT frozen across 10 Ethereum addresses on Oct. 30, 2025. Their Aug. 31 complaint in the U.S. District Court for the Southern District of New York alleges Tether acted on an informal U.S. law-enforcement request more than three months before a seizure warrant was issued on Feb. 19. The plaintiffs say they acquired the USDT through secondary-market transactions and had no direct relationship with Tether.
Why it matters
The suit asks the court to remove the addresses from Tether's blacklist and stop the issuer from destroying the frozen tokens or replacing them in a government-controlled wallet before a final forfeiture ruling. It also seeks damages and income tied to reserves backing the USDT.
That makes Tether's freeze authority the central issue. The plaintiffs challenge whether private-wallet tokens can be blocked at an informal request, and whether a later warrant allows action before a court decides forfeiture.
Market impact
The disputed funds appear linked to a wider Justice Department investigation involving more than $61 million in USDT allegedly stolen through pig-butchering scams. Prosecutors said victims were directed to fake investment platforms before funds moved through several wallets. Authorities credited Tether with helping transfer seized assets, while the issuer called the operation a recovery with its support.
Neither the businessmen's ownership claims nor the government's allegations have been decided by a court. A ruling could set boundaries for stablecoin blacklist controls and the treatment of USDT held in private wallets during seizure disputes.
Frequently asked questions
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When did the plaintiffs say Tether froze the disputed USDT?
They say Tether froze 42.4 million USDT across 10 Ethereum addresses on Oct. 30, 2025.
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What did the complaint allege about the timing of the U.S. warrant?
It alleges Tether acted on an informal U.S. law-enforcement request more than three months before a seizure warrant was issued on Feb. 19.
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What do the plaintiffs want Tether barred from doing?
They want the addresses removed from Tether's blacklist and seek to stop the issuer from destroying the frozen tokens or replacing them in a government-controlled wallet before a final forfeiture ruling.
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What broader case may be connected to the frozen USDT?
The funds appear linked to a Justice Department investigation involving more than $61 million in USDT allegedly stolen through pig-butchering scams. Prosecutors said victims were directed to fake investment platforms before the funds moved through wallets.
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Has a court decided who owns the disputed USDT?
No. Neither the businessmen's ownership claims nor the government's allegations concerning the disputed USDT have been decided by a court.
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