Cross-border payment company Conduit sues Tether, demanding the unfreezing of $2.76 million in USDT and filing a claim for damages.

Cross-border payments firm Conduit has sued Tether in the U.S. District Court for the Southern District of New York, alleging that Tether has frozen $2.76 million worth of USDT for over a year without providing a valid explanation or releasing the funds. Conduit is demanding Tether unfreeze the relevant funds and is seeking additional damages of at least $2.76 million. Conduit states that the frozen wallet serves as its "operating bank account", and the freeze stems from an investigation by Brazilian police targeting its former client Onix Intermediações. However, Conduit says law enforcement authorities have never requested the freezing of its funds, and a Brazilian court has confirmed Conduit is not under investigation in connection with the case. Conduit further claims Onix has not used its platform since April 2025, the wallet in question was created about a month later and never held Onix’s funds. The company notes the frozen funds have impacted its business operations, while Tether continues to earn revenue from the reserve assets corresponding to the frozen USDT.