Conduit Sues Tether in New York Over $2.76M USDT Treasury Freeze

Crypto payments infrastructure provider Conduit Technology has filed a federal lawsuit against Tether ($USDT) in the U.S. District Court for the Southern District of New York, seeking the return of $2.76 million in frozen stablecoins alongside at least $2.76 million in compensatory and punitive damages.
According to the complaint, Tether blacklisted Conduit's primary treasury wallet in September 2025 without explanation, effectively locking capital that functioned as the company's core operating bank account for over a year. Conduit stated that the lock crippled its working capital, forcing operational cutbacks and office closures.
The dispute stems from a Brazilian Federal Police probe involving Onix Intermediações, a former Conduit customer. However, Conduit emphasized that Brazilian law enforcement never ordered or requested its wallet to be restricted, a Brazilian court confirmed Conduit was not under investigation, and the frozen address never handled funds connected to the probe. The legal action highlights ongoing institutional scrutiny regarding centralized stablecoin blacklist mechanics and operator liability.