Conduit Technology, a cross-border payment platform, has initiated legal proceedings against Tether, seeking the return of 2.76 million USDT that was frozen without explanation in the fall of 2025.
The lawsuit was filed in the Southern District Court of New York. Conduit specializes in facilitating cross-border transactions between stablecoins and fiat currencies across Latin America, Africa, and Asia. According to the complaint, in May 2025, the fintech startup deposited $2.76 million of working capital into a corporate wallet on Fireblocks within the TRON network.
On September 24, 2025, Tether unilaterally froze this wallet, cutting off the company's access to its operational funds.
The lawsuit alleges that Tether linked Conduit's wallet to an investigation by Brazilian authorities into financial intermediaries Bull Intermediação de Negócios and Onix. Conduit's attorneys reached out to Brazilian law enforcement, who stated that they had not requested the freezing of the wallet and were unaware of the criteria used by Tether to select it. Notably, the Conduit wallet was created after Conduit ceased operations with Onix, and there were never any funds from the subjects of the investigation held in that wallet.
Tether has refused to lift the restrictions. The plaintiff accuses the company of unlawfully retaining assets, abusing control over the smart contract, and violating fiduciary duties. Conduit is seeking a jury trial, the return of its funds, and compensation for financial losses.
It’s worth noting that in 2026, Tether froze approximately $550 million in USDT in addresses that U.S. authorities linked to Iran.
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