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- Cross-border payments company Conduit Technology sued Tether over $2.76 million in USDT frozen in its treasury wallet for over a year.
- Conduit filed the complaint in the US District Court for the Southern District of New York seeking token restoration and damages.
- Tether had not publicly responded to the allegations when the lawsuit was reported.
Cross-border payments company Conduit Technology has sued Tether over $2.76 million in USDT that it says has remained frozen in its treasury wallet for more than a year without a court order or explanation.
The complaint was filed Oct. 5 in the US District Court for the Southern District of New York. Conduit wants access to the tokens restored and is seeking at least another $2.76 million in damages.
Conduit Says Brazilian Police Never Requested Treasury Wallet Freeze
Tether froze the wallet on Sept. 24, 2025, after directing Conduit to a Brazilian Federal Police investigation involving Onix Intermediações, a former Conduit customer.
Conduit says Brazilian authorities later confirmed that its treasury wallet was never identified for freezing. The company also says a Brazilian court confirmed that Conduit was not among the parties under investigation in the Onix case.
Onix had stopped using Conduit by April 2025, while the disputed treasury wallet was created the following month and never held Onix funds, according to the complaint.
Treasury Wallet Processed More Than $1.1B Before USDT Was Frozen
Conduit says the wallet functioned as an operating account before Tether blocked the USDT. According to the complaint, the address processed 4,427 transactions involving 78 counterparties and more than $1.1 billion in volume.
Conduit argues that freezing the wallet disrupted its operations despite the company not being named in the Brazilian asset-freeze order.
Lawsuit Seeks Frozen USDT Plus at Least $2.76M in Damages
The complaint names Tether Holdings, Tether International, Tether Operations and Tether Investments as defendants. Conduit brings claims including conversion, unjust enrichment, breach of fiduciary duty and computer fraud.
It is asking the court to order the wallet unfrozen, award at least $2.76 million in compensatory damages and require Tether to surrender profits allegedly earned on reserves backing the frozen tokens.
Tether had not publicly responded to the allegations when the lawsuit was reported. The case remains at the complaint stage, and Conduit’s allegations have not yet been tested in court.
