Thai Businessmen Sue Tether Over $42.4M USDT Freeze on Informal Gov Request
Federal complaint tests Tether's authority to blacklist user-held USDT without warrant or contract, seeking restitution of reserve profits during the freeze.
Two Thai businessmen filed a federal complaint alleging Tether froze $42,417,785 USDT held in their Ethereum addresses on October 30, 2025, following an informal request from a U.S. government agent without a warrant or prior notice.
The plaintiffs state they had no contract or relationship with Tether. A seizure warrant issued on February 19, 2026, sought destruction and reissuance of the tokens to a government wallet, yet the freeze remains in place nine months later.
The complaint challenges Tether's continued authority to maintain the freeze and retain profits earned on the corresponding reserves. Relief sought includes restitution, disgorgement of interest, yield, and profits derived from the frozen USDT, and imposition of a constructive trust over those amounts.
The outcome of the litigation remains unknown. The filing does not identify the specific government agent or agency involved.