Conduit Technology Takes Legal Action Against Tether
In a significant legal development, Conduit Technology, a global payments platform, is taking legal action against Tether, the issuer of the stablecoin USDT, for allegedly freezing $2.76 million of its funds without notice. Conduit filed a complaint on Monday in New York’s Southern District Court, asserting that Tether unjustly locked these funds in one of its digital wallets as part of a wider investigation by Brazilian authorities initiated in 2024.
Details of the Lawsuit
Conduit states that it began utilizing USDt in May 2025 as part of its digital treasury operations. According to the lawsuit, after the total amount of $2.76 million was frozen on September 24, 2025, the company’s operations faced severe consequences. The complaint highlights that Tether claimed the freezing action was necessary although Conduit maintains it has “no legal entitlement” to the funds.
The complaint emphasizes, “The funds are unequivocally Conduit’s, but Tether has taken them and is denying Conduit access to them,” arguing that Tether cannot arbitrarily seize money based on its own criteria.
Connection to Broader Investigations
Conduit’s assertions link the freezing of its funds to a broader inquiry by Brazilian federal police focusing on Bull Intermediação de Negócios and Onix, suggesting that Tether froze the funds based on its own assessments of risk. Despite numerous requests to have the funds released, Tether has not responded favorably, according to the lawsuit.
Context of Previous Legal Issues
This legal showdown follows another recent lawsuit where Tether faced accusations from two Thai individuals involving the freezing of $42.4 million in USDT, which was reportedly in connection with a fraud case overseen by U.S. Homeland Security Investigations. This case reflects concerns over Tether’s practices regarding fund management and the implications for businesses using its stablecoins. As of now, Tether has yet to comment on the latest allegations from Conduit.
