Conduit sues Tether over $2.76 million USDT freeze

Conduit Technology has sued Tether in federal court, alleging the stablecoin issuer froze about $2.76 million in USDT held in the payments company’s treasury wallet on September 24, 2025, and has kept the funds inaccessible for more than a year. The court has not determined whether Tether was justified in freezing the wallet. The complaint, filed in the U.S. District Court for the Southern District of New York, says the funds were working capital used in Conduit’s business. The company alleges it cannot move the USDT and seeks the return of the funds, at least $2.76 million in damages, and an accounting of income it says Tether earned on reserves backing the tokens. Conduit says the freeze arose against the backdrop of a Brazilian police investigation involving Onix, a company that had previously used Conduit’s platform. According to the complaint, police asked Tether to freeze certain wallets linked to Onix but did not identify Conduit’s treasury wallet. Conduit alleges its wallet was created after Onix’s last transaction on the platform, never held Onix funds and was selected by Tether’s own financial-crime unit using criteria the company has not disclosed.