Cross-border payments firm Conduit has sued Tether in federal court in New York. It alleges Tether froze $2.76 million in USDT in a company treasury wallet and has not restored access. The complaint was reported on October 6, 2026. Everything below is Conduit’s account as relayed by the press. No court has ruled on the merits, and the coverage reviewed did not include a Tether response.
What Conduit alleges
The Block reported that Conduit filed its complaint in the U.S. District Court for the Southern District of New York. According to the complaint, Tether froze $2.76 million in USDT held in a Conduit treasury wallet, and Conduit says it has not regained access. Cointelegraph also reported the claim, adding that the funds were allegedly frozen in September 2025 and that the action was linked to a Brazilian investigation.
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The alleged timeline
| When | What is alleged |
|---|---|
| May 2025 | Conduit begins holding USDT in a digital treasury wallet |
| September 2025 | Tether allegedly freezes the $2.76 million in that wallet |
| October 2026 | The complaint is reported, roughly a year after the alleged freeze |
The freeze is not new. The lawsuit is.
Why the funds were allegedly frozen
The reporting links the freeze to a Brazilian investigation involving Onix Intermediações, a former Conduit customer. Conduit reportedly argues that:
- Onix had stopped using Conduit’s platform before the treasury wallet was created.
- The wallet did not hold Onix funds.
- Law enforcement confirmed it had not flagged the wallet, and a Brazilian court confirmed Conduit was not under investigation in the Onix matter, according to The Block.
These are Conduit’s assertions. The coverage reviewed did not include the complaint itself or any Brazilian records, so none of this is independently verified, and Tether’s reasons for the freeze were not available.
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What Conduit is asking for
The Block reports that Conduit seeks release of the $2.76 million in USDT, plus at least another $2.76 million in damages and claimed profits or interest tied to the reserves backing the blocked tokens. The second figure is a request, not an award.
The “no legal entitlement” wording
Coverage attributes the phrase “no legal entitlement” to the complaint, not to a named executive, lawyer or judge. The reporting reviewed did not give the full sentence, so the exact wording is best read in the filing itself rather than from the headline paraphrase.
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What is still unknown
- Tether’s position. No statement or formal response was found.
- The docket. One secondary account could not access readable complaint or docket details and described the case as at the initial complaint stage. That does not establish its current status, so check the Southern District of New York docket for developments.
- The merits. No court has made any finding.
For anyone holding stablecoins, the case illustrates that an issuer-level freeze can reach a company’s treasury wallet. Whether Tether acted properly here is exactly what remains undecided.
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