Exchange Ranking
Top Exchanges
24h Volume Ranking
Popularity Ranking
Exchange BTC Balance
Proof of Reserves
Decentralized Exchanges
Funding Rate
Funding Heatmap
Liquidation Data
Max Pain
Long/Short Ratio
Whale L/S Ratio
Binance/Okex/Huobi L/S
Bitfinex Margin L/S
ETF Tracker
Solana ETF
XRP ETF
Hong Kong ETF
Bitcoin Treasuries
Crypto Reversal
Ethereum Reserves
HyperLiquid Wallet Analysis
Hyperliquid Whale Watch
Large Transactions
On-chain Movement
Bitcoin ROI
Stablecoin Market Cap
Options Analysis
News
Articles
Economic Calendar
Features
Wallet
Contract Calculator
Security
Collections
Watchlist
FollowingTwo Thai businessmen filed suit over Tether's freezing of 42.4 million USDT
Two Thai businessmen filed suit over Tether's freezing of 42.4 million USDT, accusing the stablecoin issuer of blacklisting its Ethereum address based solely on an informal request from U.S. law enforcement agencies several months before the court authorized the seizure of assets.
Nutthawat Rukthammachalern and Natthawat Kasamvilas filed a federal lawsuit in the U.S. District Court for the Southern District of New York on August 31. The case listed Tether Holdings, Tether International, Tether Operations and Tether Investments as defendants.
Tether's freeze precedes the February seizure order
The plaintiffs alleges that Tether blacklisted 10 Ethereum addresses containing 42,417,785.62 USDT after receiving an informal request from Homeland Security Investigation agents on October 30, 2025.
The plaintiff stated that there were no search warrants, subpoenas or court orders requiring Tether to freeze the assets at the time. The federal magistrate for the Eastern District of North Carolina issued the seizure order 5:26-MJ-1267-JG on February 19, 2026, nearly four months after the blacklist was implemented.
These addresses became part of a federal investigation into cryptocurrency investment fraud. U.S. authorities eventually seized more than US$61 million in USDT, which flowed to encrypted wallets suspected of receiving and cleaning proceeds from the "pig killing plate" fraud. Tether assisted investigators in transferring seized assets.
The plaintiff insisted that the USDT was obtained through secondary market transactions and denied participating in the relevant fraud.
Litigation challenging Tether blacklist authority
The case seeks a declaratory judgment on Tether's authority to freeze secondary market holder USDT without going through formal legal procedures.
Rukthammachalern and Kasamvilas filed claims for embezzlement, movable property infringement and unjust enrichment. They also asked the court to issue an injunction requiring the affected addresses to be removed from Tether's blacklist, protecting tokens from being destroyed, claiming damages, and demanding that Tether hand over the proceeds from freezing the USDT asset reserve.
The controversy points directly to the core mechanism of issuer controlled stablecoins. Tether can block the transfer of USDTs from specific addresses through smart contract control, a mechanism that has been used many times to cooperate with sanctions agencies and law enforcement actions.
Such features have triggered a larger freeze. Earlier this year, Tether blacklisted approximately US$515 million in USDT to 371 Ethereum and wavefield addresses within 30 days. Another law enforcement action froze $344 million in two wallets suspected of circumventing sanctions.
$42.4 million is still linked to a $61 million fraud
The North Carolina investigation began when the Homeland Security Investigation Bureau received reports from victims involved in fake cryptocurrency investment platforms. Investigators tracked down and found that the fraudster moved stolen funds through multiple wallets to conceal their origin and affiliation.
The New York lawsuit did not determine whether the $42.4 million was proceeds of crime, but instead questioned Tether's actions before the February seizure order and sought judicial review of the publisher's control of USDTs obtained through indirect customer relationships.
Case No.: Rukthammachalern et al. v. Tether Holdings, S.A. de C.V. et al., No. 1:26-cv-07400, heard in the Federal District Court for the Southern District of New York.
