Tether News: $42.4M USDT Freeze Sparks Court Dispute Over Government Seizure

Key Insights:

• Tether News builds on a $42.4M USDT freeze made before a court warrant.
• Plaintiffs challenge Tether’s authority to blacklist, burn, and reissue USDT.
• The lawsuit seeks wallet access, damages, and disgorgement of reserve yield.

Tether News has moved into court after two Thai businessmen challenged a $42.4 million USDT freeze. Nutthawat Rukthammachalern and Natthawat Kasamvilas filed the lawsuit in the Southern District of New York. They say Tether blacklisted their Ethereum wallets before any court issued a warrant.

According to the complaint, Tether restricted ten Ethereum addresses in late October 2025. Those wallets held 42,417,785.62 USDT belonging to the two plaintiffs. The businessmen say an informal request from a Homeland Security Investigations agent caused the freeze. They also say they received no notice before losing access to the funds.

Tether News Focuses on Freeze Before Court Warrant

Kasamvilas allegedly discovered the restriction only after attempting to move the USDT. He later contacted Tether for information about the frozen stablecoin holdings.

According to the complaint, Tether directed him to an HSI email address. The plaintiffs argue that no warrant or court order existed when the blacklist took effect.