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Conduit sues Tether over alleged $2.76 million stablecoin freeze
Conduit says the freeze began Sept. 24, 2025, and that Tether has kept the funds locked for more than a year while allegedly profiting from the reserves backing the stablecoins.
Cross-border payments firm Conduit is suing Tether in U.S. District Court for the Southern District of New York, alleging the stablecoin issuer froze $2.76 million of Conduit funds without justification and refused to release them for more than a year, according to Decrypt.
Conduit alleges Tether froze its treasury wallet, described as the digital equivalent of an operating bank account, on Sept. 24, 2025, and has continued to keep the funds locked while profiting from the reserves that back the stablecoins.
At the center of the dispute is a Brazilian investigation that Conduit says has no connection to it. Decrypt reports that Brazil Federal Police were probing entities tied to a firm called Onix, which once used Conduit's platform, but Conduit claims the frozen treasury wallet was created in May 2025, nearly a month after Onix’s last transaction on the platform, and never held any Onix funds.
The complaint, filed Monday, includes claims for conversion, unjust enrichment, breach of fiduciary duty and computer fraud, and seeks return of the frozen funds, Decrypt added.