Conduit Technology Inc. has filed a lawsuit against four Tether entities in the U.S. District Court for the Southern District of New York over approximately $2.76 million in frozen USDT. The complaint was filed on October 5 and is docketed as 1:26-cv-08773, according to an OffshoreAlert court-filing record.
Conduit alleges Tether froze its treasury wallet on September 24, 2025, and has neither restored access to the tokens nor explained the basis for the restriction for more than a year. The claimed freeze has left the company unable to access the USDT balance at issue, according to The Block.
Conduit files SDNY case over $2.76M USDT freeze
The New York case centres on Conduit's allegation that Tether restricted a wallet holding roughly $2.76 million worth of its dollar-pegged token. The complaint names four Tether entities, though the supplied court-filing record does not detail the individual claims against each defendant.
The allegations have not been tested in court. The filing nevertheless brings a prolonged token-access dispute into a federal venue, with Conduit seeking both the return of access and monetary relief.
Conduit disputes the Brazilian-investigation basis
Conduit’s challenge centers on the alleged connection between its wallet restriction and a Brazilian investigation involving former customer Onix Intermediações.
The company contends that Brazilian authorities confirmed they had not identified Conduit’s wallet for freezing and that Conduit was not under investigation, according to CoinMarketCap Academy. Conduit therefore maintains that the alleged investigation link did not provide a basis to keep its treasury wallet restricted.
The complaint seeks token access, damages and reserve income
Conduit is asking the court to restore its access to the frozen USDT and award at least $2.76 million in damages.
It also seeks disgorgement of interest or other income that it alleges Tether earned on reserves backing the frozen tokens, a request that extends the dispute beyond the frozen balance itself.
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Source: Crypto Daily