Conduit Technology sued Tether in a New York federal court over $2.76 million in frozen USDT. The company filed its complaint on October 5, seeking access to the funds and damages.
Conduit alleges Tether froze its treasury wallet on September 24, 2025, without explaining why. The company says it created the wallet for working capital and kept it separate from wallets used for customer transactions.
Conduit Challenges Tether’s Wallet Freeze
The wallet processed 4,427 transactions involving 78 counterparties before the freeze, according to the complaint. Conduit says those transactions generated more than $1.1 billion in volume.
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The dispute involves a Brazilian criminal investigation concerning other companies. Conduit says Brazilian authorities never identified its wallet as subject to the investigation or ordered it frozen.
Company Seeks Damages and Access
Conduit says the freeze strained its liquidity, reduced transaction activity and contributed to layoffs. It is seeking at least $2.76 million in damages and wants the court to restore access to the funds.
The company accuses Tether of conversion, unjust enrichment, breach of fiduciary duty and computer fraud.
Tether had not responded to the lawsuit when the report was published. The allegations have not been proven, and the court has not ruled on the claims.
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