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Oct 6, 2026

Conduit sues Tether over $2.76 million USDT freeze

Cross-border payments firm Conduit filed a lawsuit in New York federal court alleging Tether froze $2.76 million in its treasury wallet in September 2025 without explanation and has refused to release the funds for over a year, forcing layoffs.

Oct 6, 2026·6 sources
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Top claims

  • ▪Tether backs its reserves with interest-bearing instruments, mostly U.S. Treasuries
  • ▪A Senate subcommittee led by Richard Blumenthal asked the Treasury and the DOJ on September 28, 2026, to investigate Tether's sanctions and anti-money-laundering compliance
  • ▪Lawsuits against Tether interfere with legitimate law enforcement cooperation

Topics

Crypto regulationStablecoinsPaymentsTether $42.4M USDT freeze lawsuitCrypto custody regulation

Related entities

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