Tether Faces Lawsuit Over Pre-Warrant Freezing of $42 Million in USDT

Tether is being sued in the U.S. District Court for the Southern District of New York by two Thai investors after the company blacklisted their addresses and froze over $42 million in USDT. The plaintiffs allege that Tether froze the funds nearly four months before a court-issued search warrant was obtained. The legal filing highlights the centralized control Tether maintains over USDT via its blacklist mechanism, which allows the firm to restrict assets in coordination with law enforcement agencies before formal judicial authorization is finalized.