“In its sole discretion”: the Clause That Lets Tether Freeze Your USDT Without a Court Order

The information provided in this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high degree of risk. Always conduct your own research.Tether may freeze a USDT balance without a court order where the company considers it prudent at its own discretion. Since October 5, 2026, a suit in New York has been attacking exactly that clause, and for holders in Germany more hangs on it than a foreign legal dispute.Hold USDT and you do not hold a bank balance but a claim against a private company. That company can put individual addresses on a blacklist, and it does so regularly. The power to do it sits in Tether's own terms of service, and it reaches further than most holders assume: Tether may freeze a balance when a law requires it, and in addition whenever the company considers it prudent at its own discretion. Since October 5, 2026, a suit before a US federal court has been attacking exactly that clause. The payments company Conduit Technology filed in Manhattan because 2.76 million USDT from its corporate treasury have been frozen since September 24, 2025. Press coverage of recent days reports the events. The follow-...