12 October 2026
Conduit Technology Files Lawsuit Against Tether Over $2.76 Million USDT Wallet Freeze
Conduit Technology has taken legal action against Tether, the prominent stablecoin issuer, alleging that it unlawfully froze $2.76 million in USDT for more than a year. The lawsuit raises critical questions about the authority of stablecoin issuers to control users' funds.
The complaint states that Tether's actions were not prompted by any request from Brazilian law enforcement, as Conduit claims that the police never identified its treasury wallet for freezing. Instead, the decision was made by Tether’s financial crime unit based on undisclosed criteria.
Conduit established its Fireblocks wallet in May 2025 to manage its working capital, which had processed over 4,400 transactions before the freeze on September 24, 2025. The company argues that the freeze has severely impacted its operations, leading to layoffs and office closures.
The lawsuit includes six claims against Tether, including conversion and unjust enrichment. Conduit seeks not only the unfreezing of its funds but also damages and an accounting of any profits Tether earned from the frozen USDT.
This case could set a significant precedent regarding the legal limits of stablecoin issuers' powers and their ability to freeze assets without clear justification.
Explore related on CoinsCapture
Topics
Discussion
0 comments