U.S.-based payment firm Conduit has sued Tether in the Southern District of New York over the freeze of $2.76 million in USDT, claiming there was no justifiable basis for the seizure. Tether froze the funds on September 24, 2025, at the apparent request of the Brazilian Federal Police, although Brazilian authorities denied ordering the freeze. According to Conduit, Tether continues to earn interest income on the reserve assets backing the frozen funds. This marks the second lawsuit filed against Tether in less than two months, as the stablecoin issuer also faces growing scrutiny from the U.S. Congress over its alleged role in illicit crypto flows linked to Iran.
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