Cross-border payments company Conduit filed a lawsuit on October 5 against Tether in the U.S. District Court for the Southern District of New York, seeking $2.76 million in USDT frozen since September 24, 2025. The funds, locked in Conduit’s treasury wallet for over a year, were seized by Tether’s T3 Financial Crime Unit without explanation or justification. The freeze allegedly stems from a Brazilian federal police investigation into Conduit’s former client, Onix Intermediações, which reportedly never deposited funds into this wallet created on May 20, 2025. The wallet had processed over $1.1 billion in volume within four months across 4,427 transactions and 78 counterparties, with no connection to Onix. Conduit is seeking the unfreezing of funds, at least $2.76 million in damages, and restitution of profits derived from reserves backing the frozen USDT.
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