Two Thai businessmen sued Tether for allegedly freezing $42.4M USDT without court authorization, challenging stablecoin issuer powers over asset seizure and reissuance.
DeFi & Yields ·
Two Thai businessmen are challenging Tether in federal court over approximately $42.4 million in USDT they claim was frozen in October 2025 based solely on an informal request from Homeland Security Investigations, without a warrant or judicial approval. A seizure warrant from the Eastern District of North Carolina was not issued until February 2026, directing the tokens be burned and reissued to a government wallet in connection with a $61 million "pig butchering" laundering investigation. The lawsuit does not contest the criminal allegations underlying the case but disputes whether Tether possessed the authority to immobilize assets absent prior court authorization and whether the later warrant legitimately permitted the burning and reissuance of the tokens.