Two Thai businessmen sued Tether, alleging the stablecoin issuer froze roughly $42.4M in USDT without legal authority.

The plaintiffs claim Tether blacklisted 10 Ethereum addresses in October 2025 following an informal request from a Homeland Security Investigations agent, before any warrant or court order was issued.

More than three months later, a federal magistrate judge issued a seizure warrant outlining plans to burn the restricted USDT, mint replacement tokens, and transfer them to a government-controlled wallet.

Tether has said it works with 340+ law-enforcement agencies across 65 countries and has helped freeze more than $4.4B linked to suspected unlawful activity.

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