A cross-border payments company is accusing Tether of seizing millions from its digital wallet without justification or notice.

Conduit alleges Tether froze the entire $2.76 million balance in its Fireblocks USDT wallet on its own initiative.

Conduit Technology, Inc. stored the working capital in May 2025, and the wallet processed 4,427 transactions totaling over $1.1 billion across 78 counterparties before the freeze.

The lawsuit alleges that Tether has provided no justification for the action and has instead referred Conduit to the Brazilian Federal Police.

“The Federal Police confirmed that they had previously identified certain wallets that they requested Tether to freeze, in connection with an investigation into a third party, Onix Intermediações Ltda. (‘Onix’), which at one point in time used Conduit’s platform. But Conduit’s treasury wallet was never used by Onix, does not hold any Onix funds, and has never held any Onix funds.”

According to the lawsuit, the Federal Police confirmed they did not request the freeze and that the Brazilian Criminal Court said Conduit is not under investigation. Conduit claims its treasury wallet did not even exist when Onix last used its platform in April 2025.

“In fact, Conduit’s treasury wallet did not even exist when Onix was using Conduit’s platform.”

The suit alleges Tether is profiting from interest on the reserves while denying access for more than a year.

From an on-chain analytics and liquidity distribution perspective, developments around "Tether Is Facing Lawsuit Over Alleged $2,760,000 USDT Freeze Without Justification" signal important shifts in network participation. Market participants observe that derivative funding metrics, exchange reserve telemetry, and smart contract protocol interactions reflect cautious accumulation alongside disciplined risk hedging across the sector.

Technical research analysts at CryptoAce VIP note that high-density order book clusters and volume-weighted average price (VWAP) benchmarks near recent consolidation floors will serve as pivotal indicators. Market observers are advised to cross-examine telemetry on verified block explorers before making capital allocations.

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