Tether Faces Lawsuit Over $42.4M USDT Freeze Made Before U.S. Warrant

Tether is facing a federal lawsuit over allegations that it blacklisted 10 Ethereum addresses containing 42,417,785.62 USDT on October 30, 2025, months before the government obtained a related seizure warrant. The plaintiffs say the action followed an informal request from a Homeland Security Investigations agent, rather than a warrant, subpoena or court order.

Nutthawat Rukthammachalern and Natthawat Kasamvilas filed the complaint against four Tether entities in the Southern District of New York on August 31, 2026. The case is listed as 1:26-cv-07400.

The central issue is the 112-day gap between the alleged blacklist and a February 2026 seizure warrant. The claims in the complaint have not been adjudicated, and the filing sets out the plaintiffs' account of the events and their requested relief.

Alleged October blacklist

According to the complaint, Tether blacklisted the 10 Ethereum addresses on October 30, 2025. The addresses allegedly held a combined 42,417,785.62 USDT, or roughly $42.4 million.

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