Cross-border payments firm Conduit sued Tether in New York federal court, saying the issuer froze its $2.76M USDT treasury wallet in September 2025 without cause.
The freeze traces to a Brazilian Federal Police probe into Onix, a former Conduit client. Conduit says the wallet was opened after Onix left and never held its funds, and police never flagged it. A police filing shows Tether’s own T3 unit picked which wallets to freeze.
Conduit wants the funds back plus damages, including the yield Tether earned on Treasuries backing the frozen tokens. The freeze forced layoffs and office closures.
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