Conduit Sues Tether Over $2.76 Million Frozen USDT Funds
Cross-border payments company Conduit has filed a lawsuit in the U.S. District Court for the Southern District of New York, accusing stablecoin issuer Tether of freezing $2.76 million in funds and refusing to release them or explain the action. According to ChainCatcher, Conduit said its USDT has been locked for more than a year.The complaint says Conduit owes Tether no money and has no obligations to Tether. Conduit said the frozen wallet was used as its operating bank account and that the company moves funds across more than 100 countries using stablecoins including Tether's USDT and Circle's USDC.The lawsuit says the freeze was allegedly linked to an investigation by Brazilian federal police involving Conduit former client Onix Intermediações. Conduit said law enforcement confirmed it never requested the payment service provider's wallet be frozen, and Brazilian courts also confirmed Conduit was not under investigation in the Onix Intermediações case.According to the complaint, Onix had not used the Conduit platform since April 2025, about one month before the wallet was created, and the wallet never held any Onix funds. Conduit said the freeze has affected its business while Tether continues to earn interest on the reserves backing the frozen USDT.