A federal lawsuit filed by Conduit Technology targets stablecoin giant Tether over allegations the firm froze $2.76 million in USDT assets without providing any rationale.
Conduit sued Tether over a $2.76M USDT freeze tied to a Brazil investigation, seeking access to the funds, damages and reserve profits.
In a New York lawsuit, Conduit says Tether's financial-crime unit added its treasury wallet to freezes tied to a Brazilian probe that never targeted it, and has kept the money locked since September 2025.
Conduit Technology says Tether froze its $2.76 million treasury wallet without giving a reason, in a suit that tests how far Tether's freeze power reaches.
Conduit Technology has sued Tether after the stablecoin issuer froze $2.76 million in the company's USDT and allegedly kept it locked for more than a year. The stranger part is why.
Conduit, a cross-border payments firm, has sued Tether over a $2.76 million USDT freeze it says has locked up its main operating account for more than a year. Tether's motives for freezing wallets have come under increased scrutiny as firms and individuals drag the issuer to court regarding their assets.
The lawsuit alleged that Tether froze USDt funds in a Conduit wallet tied to an investigation launched by Brazilian authorities in 2024.
A Senate Democratic staff analysis found that 84% of 846 wallets identified by U.S. or Israeli authorities transacted almost entirely in USDT.
The complaint was filed Oct. 5, 2026, in the U.S. District Court for the Southern District of New York.
The lawsuit highlights potential counterparty risks in stablecoin transactions, raising concerns about asset control and legal recourse. Conduit sues Tether over $2.76 million in frozen USDT.
The amount was denominated in USDT. The supplied report gives no reason for the movement.
The Oct. 2 inflow exceeded a previously recorded 30.5666 million USDT inflow but was below the 58.2991 million recorded Sept. 29.