Cross-border payments company Conduit Technology filed suit against Tether in the U.S. District Court for the Southern District of New York on Oct. 5, alleging that the stablecoin issuer froze about $2.76 million worth of USDT held in Conduit’s treasury wallet starting in September 2025 and has not released the funds. Conduit said the freeze was tied to a Brazilian police investigation involving entities including BULL and Onix, but argued that it was not a target of that probe and that its wallet was not included on any freeze list issued by Brazilian authorities. According to the complaint, Tether instead identified and froze the wallet through its T3 Financial Crime Unit based on its own internal standards. Conduit’s claims include conversion, unjust enrichment, breach of fiduciary duty, and computer fraud. The company is asking the court to order Tether to unfreeze the assets and award at least $2.76 million in damages, along with related losses, interest, and proceeds.
Conduit Technology, a cross-border payments company, sued Tether in the U.S. District Court for the Southern District of New York on Oct. 5, alleging that Tether froze about $2.76 million in USDT held in Conduit’s treasury wallet starting in September 2025 and has yet to release the funds.
Conduit said the freeze was connected to a Brazilian police investigation involving entities including BULL and Onix. The company said it was not a subject of that investigation, and that its wallet was not listed by Brazilian police for freezing. According to the complaint, Tether identified and froze the wallet through its T3 Financial Crime Unit using its own standards.
The lawsuit accuses Tether of conversion, unjust enrichment, breach of fiduciary duty, and computer fraud. Conduit is asking the court to order Tether to unfreeze the assets and to award at least $2.76 million, plus related damages, interest, and proceeds.
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