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Conduit Technology sues Tether over $2.76 million USDT freeze
Conduit Technology, a cross-border payments firm, has filed a lawsuit against Tether in the U.S. District Court for the Southern District of New York. The company alleges that Tether unilaterally froze $2.76 million in USDT from its corporate treasury wallet on September 24, 2025, without legal justification or a direct request from law enforcement.
The dispute is linked to a Brazilian Federal Police investigation into financial entities Bull Intermediação de Negócios and Onix Intermediações. Conduit maintains that its treasury wallet was created in May 2025, well after its business relationship with Onix ended in April 2025, and that the wallet never held funds belonging to the investigated parties. Furthermore, Conduit claims that Brazilian authorities never identified its specific wallet as a target for freezing.
Conduit alleges that Tether’s T3 Financial Crime Unit acted on its own initiative using undisclosed criteria to select the wallet. The company, which uses the frozen funds as working capital for client payments, claims the freeze has caused significant business disruption, including layoffs and office closures. The lawsuit seeks the restoration of access to the funds, at least $2.76 million in damages, and compensation for profits Tether allegedly earned from the reserves backing the frozen tokens.
Entities
Bull Intermediação de Negócios · Conduit · Conduit Technology · Onix Intermediações · Richard Blumenthal · T3 Financial Crime Unit · Tether
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] The freeze has reportedly caused Conduit to undergo layoffs and office closures. www.sondakika.com · unchainedcrypto.com · decrypt.co
- [● 9 SOURCES] Tether froze $2.76 million in USDT from Conduit’s corporate treasury wallet on September 24, 2025. crypto.news · koinbulteni.com · mycryptoparadise.com · www.cryptopolitan.com · news.bitcoin.com · +4 more
- [● 7 SOURCES] Conduit Technology filed a lawsuit against Tether in the U.S. District Court for the Southern District of New York on October 5, 2025. crypto.news · koinbulteni.com · www.cryptopolitan.com · www.sondakika.com · unchainedcrypto.com · +2 more
- [● 5 SOURCES] Tether’s T3 Financial Crime Unit allegedly selected the wallet for freezing using its own undisclosed criteria. crypto.news · news.bitcoin.com · unchainedcrypto.com · decrypt.co · cointelegraph.com
- [● 6 SOURCES] The lawsuit seeks the return of $2.76 million plus at least $2.76 million in damages and reserve profits. crypto.news · koinbulteni.com · www.cryptopolitan.com · www.sondakika.com · unchainedcrypto.com · +1 more
- [● 7 SOURCES] Conduit claims Brazilian police did not request the freeze of its specific treasury wallet. crypto.news · koinbulteni.com · www.cryptopolitan.com · news.bitcoin.com · unchainedcrypto.com · +2 more
- [● 7 SOURCES] The freeze was allegedly linked to a Brazilian Federal Police investigation into Onix Intermediações and Bull Intermediação de Negócios. crypto.news · koinbulteni.com · www.cryptopolitan.com · www.sondakika.com · unchainedcrypto.com · +2 more