Thai businessmen sue Tether over $42.4M USDT freeze without warrant

Two Thai businessmen have sued Tether in the U.S. District Court for the Southern District of New York over the freezing of 42,417,785 USDT without a court warrant, fintech lawyer Ariel Givner said on X. According to the complaint, Tether blacklisted the address on Oct. 30 last year following an informal request from a U.S. Homeland Security Investigations agent, and there was no warrant or court order against Tether at the time. The plaintiffs argue the U.S. government later issued a seizure warrant in February this year directing that the USDT be burned and the same amount reissued to a government-controlled wallet, but the lawsuit contends the warrant also did not grant Tether authority to freeze or burn the tokens. The plaintiffs are seeking to lift the freeze, block any burn, recover damages, and force Tether to disgorge interest income allegedly earned while continuing to manage the reserves backing the frozen USDT. These claims are allegations by parties to the lawsuit, and no court ruling has been made.