Cross-border payments company, Conduit Technology, has sued Tether, the issuer of the USDT stablecoin, alleging the stablecoin issuer froze $2.76 million of its USDT without justification and has refused to release the funds for more than a year.

In a complaint filed in a U.S. federal court in New York, Conduit said Tether froze its treasury wallet in September 2025 in connection with a Brazilian police investigation involving former Conduit customer, Onix Intermediações.

Conduit said Brazilian authorities did not identify its wallet for freezing and that the funds were solely its own working capital.

MILESTONE | Tether Voluntarily Freezes $225 Million in Stolen USDT – The Largest Ever Freeze of USDT in History

Conduit is seeking the release of the funds and at least $2.76 million in damages.

In 2024, Conduit’s platform saw 16x transaction volume growth, surpassing $10 billion in annualized volume. The company’s network now spans 14 currencies and over 20 banking partners across nine countries, including the U.S., Mexico, Brazil, Nigeria, and Kenya.

https://bitcoinke.io/2025/05/conduit-raises-funding-to-scale-stablecoins-payments/

The case adds to growing legal scrutiny of Tether’s ability to freeze USDT in response to law-enforcement investigations following a separate lawsuit in which two Thai nationals challenged the freezing of $42.4 million in USDT following an ‘informal request’ by U.S Homeland Security Investigations.

CASE STUDY | This Stablecoin Freeze Sets a Legal Precedent for Privacy DeFi

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