Conduit Sues Tether Over Blocked Funds

American fintech service Conduit has filed a lawsuit against Tether, the issuer of USDT, over the freezing of $2.76 million in assets. The company is contesting the legality of the freeze on its stablecoin holdings.

The wallet freeze occurred in September 2025 amid an investigation by Brazilian federal police. The focus was on Onix Intermediações, a firm that had previously collaborated with Conduit.

Conduit emphasizes that it was not involved in the Brazilian investigation. Company representatives state that Brazilian authorities did not request the freezing of the client's wallet.

The partnership between Conduit and Onix Intermediações ended in April 2025, prior to the creation of the blocked wallet. According to the plaintiff, Onix's funds never even passed through this account.

Tether has held the funds for over a year without providing legal grounds for further freezing. The dispute has escalated into litigation, with both sides defending their positions.

The plaintiff demands the immediate release of $2.76 million in USDT. Additionally, Conduit intends to seek compensation from Tether in an equivalent amount.