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      Conduit Files Lawsuit Against Tether Over Frozen Funds

      Conduit, a cross-border payment company, has initiated legal proceedings against Tether in the Southern District of New York Federal Court. The lawsuit alleges that Tether has unlawfully frozen $2.76 million in USDT, which Conduit claims has been inaccessible for over a year without any explanation from Tether. Conduit asserts that it has no financial obligations to Tether and relies on stablecoins, including Tether's USDT and Circle's USDC, to facilitate transactions in over 100 countries.

      The frozen wallet is described as critical to Conduit's operations, functioning as its 'operating bank account.' The freeze is reportedly linked to an investigation involving a former client, Onix Intermediações, which has been under scrutiny by the Brazilian Federal Police. However, Conduit contends that law enforcement has confirmed it did not request the freezing of its funds, and a Brazilian court has stated that Conduit is not under investigation in relation to the Onix case.

      Conduit further claims that Onix has not utilized its platform since April 2025, prior to the establishment of the wallet in question, and that the wallet has never contained funds from Onix. The company argues that the prolonged freeze has adversely impacted its business operations, while Tether continues to accrue interest on the reserves associated with the frozen USDT.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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