The lawsuit alleges that Tether deposited USDt funds into a conduit wallet linked to an investigation launched by Brazilian authorities in 2024.
Cross-border payments platform Conduit Technology has alleged that stablecoin issuer Tether has frozen $2.76 million of USDt (USDT) in September 2025 without explanation.
In a complaint filed Monday in the U.S. District Court for the Southern District of New York, Conduit said That Tether has seized the company’s funds to which it has “no legal rights” and “no claims.” The company said it began holding USDt as part of its digital treasury wallet in May 2025, alleging that Tether deposited all $2.76 million in stablecoins in September with “no justification” — an action Conduit claims “materially affected its business.”
“The funds are unequivocally Conduit’s, but Tether has taken them and is denying Conduit access to them,” Conduit alleged in the complaint, adding: “Tether is not allowed to take money from businesses because they chose to store that money in Tether’s currency.”
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