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Thai businessmen sue Tether over USDT freeze in pig butchering case
The plaintiffs say Tether froze $42.4 million in October 2025 before a seizure warrant was issued in February 2026, and they are seeking unfreezing plus potential punitive damages.
Two Thai businessmen have sued stablecoin issuer Tether in New York federal court, arguing the company illegally froze $42.4 million in Tether USDt (USDT) in October as part of a pig butchering scheme.
According to Cointelegraph, the plaintiffs did not dispute their involvement in the scam, but they claim Tether lacked authority to freeze the funds at the time. They allege the freeze followed an informal request from US Homeland Security Investigations, while authorities in the Eastern District of North Carolina later issued a seizure warrant in February 2026 tied to a broader $61 million case.
The warrant, as described by Cointelegraph, directed the burn and reissuance of the tokens to a government wallet. The lawsuit also tests the extent of stablecoin issuers' freezing authority and asks for the funds to be unfrozen and for potential punitive damages.
Cointelegraph also notes that a separate US case resulted in a February sentencing of a dual national of China and St. Kitts and Nevis to 20 years in prison for orchestrating a $73 million pig butchering scam.