Conduit Sues Tether Over $2.76 Million USDT Freeze Lasting…
By Abdelaziz Fathi
AI summary of the source article
Cross-border payments provider Conduit Technology has filed a lawsuit against Tether in the U.S. District Court for the Southern District of New York following a year-long freeze on approximately $2.76 million in USDT held in a corporate treasury wallet. Conduit argues that Tether applied issuer-level controls without a court order or direct request from a Brazilian Federal Police investigation. The complaint includes claims of conversion, unjust enrichment, breach of fiduciary duty, and violations of the federal Computer Fraud and Abuse Act. Conduit is seeking an order restoring access to the tokens, at least $2.76 million in compensatory damages, punitive damages, and disgorgement of reserve earnings.
Why it matters
The case highlights operational and counterparty risks for payment firms using centralized stablecoins, testing whether issuers can legally freeze corporate funds without a direct government order.
Key facts
- Conduit Technology sued Tether in the U.S. District Court for the Southern District of New York over $2.76 million in frozen USDT.
- Conduit alleges a Brazilian court confirmed it was neither an investigated party nor subject to an asset freeze order in the underlying probe.
- The frozen Fireblocks-custodied wallet had processed 4,427 transactions and over $1.1 billion in volume prior to the restriction.