Conduit sues Tether over $2.76 million in frozen USDT

Cross-border payments platform Conduit Technology, Inc. has taken Tether to federal court. The company alleges the stablecoin issuer froze approximately $2.76 million of its USDT without warning or explanation. The complaint was filed on October 5, 2026, in the US District Court for the Southern District of New York. What Conduit is alleging According to the complaint, the freeze took place in September 2025. Conduit says it lost access to the funds as of September 24, 2025. The company attributes the action to Tether’s T3 Financial Crime Unit. Conduit argues that unit acted without authority and without any compliance issue tied to Conduit itself. The lawsuit names several Tether entities as defendants. These include Tether Holdings, Tether International, Tether Operations, and Tether Investments S.A. de C.V. Conduit says it began holding the USDT in May 2025 as working capital. The freeze has been linked to a Brazilian Federal Police investigation. Conduit, however, claims it had no involvement in that probe. It also says its digital treasury wallet was not flagged in the investigation. What Conduit wants from the court The company is asking for three main things. First, a declar...