DECRYPT · 2026-10-06 19:46 UTC

Tether Hit With Lawsuit Over $2.76 Million Stablecoin Freeze

Conduit sued Tether in New York federal court alleging the stablecoin issuer froze $2.76 million in its treasury wallet on Sept. 24, 2025, without justification and has refused to release it for over a year. Conduit claims the freeze was based on a Brazilian police probe into unrelated third party Onix, but Conduit's wallet was created after Onix's last transaction, never held Onix funds, and was flagged by Tether's own T3 Financial Crime Unit - not police. Conduit says the freeze forced layoffs and office closures while Tether earned interest on the backing reserves; the case adds to…

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