Tether Faces Lawsuit Over $61M Pre-Warrant Freeze
PUBLISHED Sep 2, 2026, 9:38 AM ET
Two Thai businessmen filed a lawsuit against Tether Holdings Limited in the United States District Court for the Southern District of New York, challenging the company's authority to freeze and seize over sixty million dollars in digital assets. The legal dispute originates from an October 2025 incident when Tether blacklisted ten Ethereum wallets containing forty-two million USDT following an informal request from a Homeland Security Investigations agent. The plaintiffs argue the initial freeze violated due process because authorities did not obtain a judicial seizure warrant until four months later in February 2026. The complaint states the plaintiffs acquired the digital assets through legitimate secondary-market business transactions and never signed Tether's terms of service. Plaintiffs are seeking declaratory relief, the unfreezing of their assets, financial damages, and the disgorgement of reserve income earned by Tether on the immobilized funds. Tether has not yet publicly responded to the federal lawsuit.
By Sarah Whitman | JQJO News
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Plaintiffs filed lawsuit in New York court on August 31, 2026. https://www.courtlistener.com/docket/69999999/rukthammachalern-v-tether-holdings-limited/
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Tether Faces Lawsuit Over $61M Pre-Warrant Freeze
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