Overview
- Conduit Technology filed a complaint in the U.S. District Court for the Southern District of New York on Monday seeking a declaratory judgment, an immediate unfreeze of about $2.76 million in USDT, and at least $2.76 million in damages.
- The company says Tether froze its treasury wallet on September 24, 2025 and that the wallet was created in May 2025, after the third party at the center of a Brazilian probe last moved funds.
- Conduit alleges Tether’s internal T3 Financial Crime Unit froze the balance without a police flag, and the Brazilian Federal Police told Conduit they never identified that wallet for seizure.
- Conduit says the freeze gutted its liquidity after the wallet processed roughly $1.1 billion in volume over four months and forced layoffs and office closures while Tether continued to hold interest-earning reserves.
- The suit names multiple Tether entities and joins other recent cases over issuer freezes, raising urgent questions about the legal reach of freeze powers, likely jurisdictional fights, and the business risk of holding centrally issued stablecoins.