“Tether does not have the right to seize money from companies simply because they chose to hold it in Tether’s currency,” stated cross-border payments firm Conduit as it filed a lawsuit in US Federal Court. The dispute centers on the freezing of a corporate wallet containing $2.76 million in USDT back in September 2025. Conduit representatives claim the stablecoin issuer locked its operating funds without any legal justification and has refused to release them for over a year.

The catalyst for the conflict was a Brazilian Federal Police investigation into a third-party firm, Onix. Tether referenced this inquiry; however, Brazilian law enforcement confirmed that Conduit’s wallet was never flagged in the investigation and no request for its freeze had been issued by them.

As a result of the operating wallet freeze, Conduit faced a severe liquidity shortage, forcing employee layoffs and office closures. The firm is now demanding the return of its funds, damages, and the disgorgement of all interest profits Tether earned on the backing reserves during the freeze.