Cross-border payments company Conduit has filed suit against Tether in the U.S. District Court for the Southern District of New York, alleging that the stablecoin issuer froze $2.76 million worth of USDT for more than a year without a reasonable explanation or releasing the funds. In its complaint, Conduit is asking the court to order the release of the frozen assets and is also seeking at least $2.76 million in additional damages. Conduit said the wallet that was frozen functioned as the company’s "operating bank account." According to the company, the freeze stemmed from a Brazilian police investigation involving its former client Onix Intermediações. Conduit said law enforcement never requested that its funds be frozen, and that a Brazilian court confirmed the company was not under investigation in the case. The company also said Onix had stopped using its platform in April 2025, while the wallet at issue was created about a month later and never held any funds belonging to Onix. Conduit said the freeze has affected its business operations, while Tether continues to earn income from the reserve assets backing the frozen USDT.
On Oct. 7, cross-border payments company Conduit filed a lawsuit against Tether in the U.S. District Court for the Southern District of New York, alleging that Tether froze $2.76 million worth of USDT for more than a year without providing a reasonable explanation or releasing the funds.
Conduit is asking for the funds to be unfrozen and is also seeking at least $2.76 million in additional damages.
According to Conduit, the frozen wallet served as the company’s "operating bank account." The company said the freeze was tied to a Brazilian police investigation involving its former client, Onix Intermediações. Conduit said law enforcement never asked for its funds to be frozen, and that a Brazilian court confirmed the company was not under investigation in the case.
Conduit also said Onix had not used its platform since April 2025, while the wallet involved was created about a month later and never held any Onix funds.
The company said the freeze has affected its business operations. It also alleged that Tether continues to earn income from the reserve assets backing the frozen USDT.
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