[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"news-aggregator-thai-entrepreneurs-challenge-t6701a063ed-cb95-7440-a999-3fc918447151":3},{"id":4,"timestamp":5,"title":6,"content":7,"link":8,"preview":9,"tags":10,"predictedTags":11,"showTags":12,"source":13,"reactions":14,"selfReactions":15,"logo":16,"sourceId":17,"sourceUserId":18,"asset":19,"tagsCategories":20,"totalComments":21,"lang":22,"unique_views_count":23,"enrichStatus":24,"triageKind":18,"triageImportance":18,"expandEligible":18,"summarizeEligible":18,"eventEligible":18,"eventType":18,"eventAction":18},"thai-entrepreneurs-challenge-t6701a063ed-cb95-7440-a999-3fc918447151","1788379906000","Thai Entrepreneurs Challenge Tether's Unlawful USDT Asset Freeze in Court","\u003Cp>Thai Businessmen Challenge Tether Over $42.4M USDT Freeze Without Warrant\u003C/p>\u003Cp>Two Thai businessmen took Tether to court in New York. Their claim: Tether froze $42.4 million in USDT back in October 2025 without any formal legal authority to do so. No warrant. No court order. Just a freeze.\u003C/p>\u003Cp>The pair admit they were caught up in a $61 million pig butchering scheme — that’s not in dispute. What they’re fighting is whether Tether had the right to lock their funds before any judge signed off on it.\u003C/p>\u003Cp>The court filing, submitted Monday, says Tether acted after an informal request from US Homeland Security Investigations. Not a warrant. An informal request. The actual seizure warrant didn’t come until February 2026, issued out of the Eastern District of North Carolina. That warrant directed the burn and reissuance of the tokens to a government-controlled wallet. By that point, the funds had already been frozen for months.\u003C/p>\u003Cp>The plaintiffs want those funds unfrozen. They’re also seeking punitive damages.\u003C/p>\u003Cp>The Core Legal Fight: Warrant Timing and Tether’s Authority\u003C/p>\u003Cp>Corporate attorney Ariel Givner weighed in on the case. Per Givner, the plaintiffs aren’t denying the government’s claims about the scam proceeds. That’s basically off the table. The real fight is about what Tether did before that warrant existed — and whether a private company can freeze, burn, or reissue tokens without explicit judicial authorization.\u003C/p>\u003Cp>That’s the question sitting at the center of all of this. And it’s not a small question. Tether is the world’s largest stablecoin issuer by market cap, and it’s well-known in the industry that Tether has historically cooperated with law enforcement on asset freezes. The company has frozen wallets tied to sanctions violations, fraud cases, and other criminal activity. But those freezes have generally come with at least some formal backing.\u003C/p>\u003Cp>Here, the plaintiffs say there was none — not at the time Tether acted.\u003C/p>\u003Cp>There’s a financial angle too. The lawsuit argues that while the funds sat frozen, Tether continued earning returns on the reserves backing those USDT tokens. The plaintiffs say that’s not justified when the freeze itself lacked legal grounding. Basically: Tether allegedly profited from holding assets it had no legal right to hold yet. That’s the part that probably stings most for the plaintiffs, even beyond the principal amount.\u003C/p>\u003Cp>Pig Butchering Schemes Keep Landing in Court\u003C/p>\u003Cp>Pig butchering scams have exploded as a global enforcement priority. The scheme type — where fraudsters build fake romantic or investment relationships with victims before convincing them to pour money into sham crypto platforms — has caused billions in losses worldwide. Stablecoin rails, particularly USDT, have become a common vehicle for moving the proceeds.\u003C/p>\u003Cp>In a related case, a US court sentenced a dual national from China and St. Kitts and Nevis to 20 years in prison for running a separate $73 million pig butchering operation. That’s a different case, different defendants, but it sits in the same broader enforcement wave that caught the two Thai businessmen.\u003C/p>\u003Cp>Law enforcement across multiple jurisdictions has leaned heavily on stablecoin issuers to freeze assets quickly, often before paperwork catches up. The speed matters — crypto moves fast, and a warrant that takes weeks to process can mean funds are long gone. But that speed creates exactly the kind of legal gray zone the Thai businessmen are now exploiting in court.\u003C/p>\u003Cp>The plaintiffs aren’t arguing they’re innocent of the underlying fraud. They’re arguing Tether acted without proper legal justification at the time it froze their assets, and that the company benefited financially from holding those funds during the period before a warrant was issued.\u003C/p>","https://thecurrencyanalytics.com/stable-coins/thai-businessmen-sue-tether-over-42-4m-usdt-freeze-before-warrant-existed-289843","https://thecurrencyanalytics.com/wp-content/uploads/2026/09/thai-businessmen-sue-tether-over-42-4m-usdt-freeze-before-warrant-existed-1788373604.jpg","[\"stable coins\",\"Ethereum Price\",\"SEC\",\"USDT\",\"stable coins\",\"Ethereum Price\",\"SEC\",\"USDT\"]","[\"USDT\",\"Tether\"]","[{\"name\":\"USDT\",\"id\":\"usdt\",\"img\":\"https://toscalepublic.s3.eu-west-2.amazonaws.com/images/coins-lib/full-library/color/USDT.png\"}]","67",[],[],"https://toscalepublic.s3.eu-west-2.amazonaws.com/images/news-feeds/sources/the-currency analytics.png","The Currency Analytics",null,"","[\"Crypto\",\"Other\"]","0","EN","1","done"]