Conduit alleges that Tether froze about $2.76 million in USDT in a treasury wallet for more than a year, without a valid basis or meaningful explanation. The complaint, filed October 5 in the Southern District of New York, seeks access to the wallet, at least $2.76 million in compensatory damages, and additional relief. These are Conduit’s allegations, not findings by a court. The Apex Index’s case report OffshoreAlert’s filing reference

TetherUSDTOct 6, 2026, 19:31 UTC

Conduit says Tether’s T3 Financial Crime Unit acted in connection with a Brazilian Federal Police investigation into other parties. It alleges that Brazilian authorities did not name its wallet for freezing, that Conduit was not under investigation, and that the wallet was created after the former customer linked to the inquiry had stopped using its platform. Conduit says the wallet held none of that customer’s funds. The Apex Index TFTC21’s post referencing the complaint

The dispute highlights USDT’s issuer-level control: Tether can technically restrict transfers from an address holding its tokens. The lawsuit challenges the grounds and process for using that power here; it does not establish that Tether lacked authority or that the freeze was unlawful. The reported filing seeks a ruling on Conduit’s claims, but the available case reporting provides no court decision or Tether response. The Apex Index

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Answered Oct 6, 2026, 19:31 UTC

Sources 3

The Apex Index’s case reportthe-apexindex.com
OffshoreAlert’s filing referenceoffshorealert.com
TFTC21’s post referencing the complaintx.com

Research trace 21

Latest posts of @tether
The page www.theblock.co
The supplied report identifies a newly filed New York lawsuit, but the linked article could not be read. I’m looking for the complaint’s allegations, the court and filing details, and any reporting that explains what the case says about Tether’s power to freeze USDT.
The first search found only short reposts and could not read the initial article. I’m checking independent news coverage and court-record references for the complaint’s specific allegations and the legal basis for Tether’s freeze authority.
The secondary report identifies the case as 1:26-cv-08773 and summarizes the complaint, but does not provide the filing itself or Tether’s contractual terms. I’m checking for the court docket or complaint and Tether’s published freeze provisions to separate the plaintiff’s allegations from the issuer’s stated authority.
The reporting found a case number and summarized Conduit's claims, while Tether's legal page was only partially readable. I’m checking direct court and primary-source records for the complaint and the precise terms governing Tether’s ability to restrict USDT.
The earlier reporting describes Conduit's claims but does not include the complaint or Tether's full freeze terms. I’m checking the supplied news post and searching for court-record references and the issuer’s stated USDT freeze policy.
Earlier reporting and a post referring to the complaint identify the alleged freeze and case, but the complaint text and Tether’s operative terms remain unverified. I’m seeking the filing and the issuer’s published freeze provisions to separate allegations from contractual authority.
The complaint is now identified by case number and reporting describes Conduit's allegations, but the actual filing and Tether’s applicable freeze terms remain unverified. I’m checking the public court record and the issuer’s published terms for what the suit alleges and what contractual authority Tether claims.
The earlier results identify the complaint and summarize Conduit's allegations, but do not establish Tether’s contractual freeze powers or the filing’s full account. I’m checking Tether’s published terms and seeking the complaint text or a court-record reference to clarify what the case alleges versus what has been legally decided.
Earlier results outline Conduit's allegations but don’t establish what the complaint itself says about Tether’s freeze authority. I’m checking Tether’s published terms and a separate account of the filing to distinguish the contractual power Tether claims from what this lawsuit alleges.
The complaint summaries identify a Southern District of New York case and allege that Tether’s T3 unit froze Conduit’s wallet in connection with a Brazilian investigation. I’m seeking the filing itself and Tether’s operative freeze terms to determine what authority the case challenges.
The supplied reporting and filing references describe Conduit's allegations, but the record still needs a current response and the terms behind Tether’s freeze authority. I’m checking recent public reporting and Tether’s own published terms.
The available summaries describe Conduit's allegations but do not establish the complaint’s precise theory or the scope of Tether’s published freeze powers. I’m checking the issuer’s terms and seeking later public statements or case updates that could clarify those points.
Prior results summarize Conduit’s allegations but don’t establish the exact freeze provisions in Tether’s terms or whether the case has advanced since filing. I’m checking current reporting and the issuer’s published terms for those points.
The complaint’s docket reference and allegations are established in the earlier findings, but Tether’s terms page did not expose the relevant clauses and no response has surfaced. This step seeks an independent primary-source route to the operative terms and any docket updates since filing.
The prior results summarize Conduit’s complaint but have not exposed the docket or Tether’s specific freeze clause. I’m checking whether a fresh search can locate either primary source and clarify what the lawsuit establishes about issuer control.
Prior results describe Conduit’s claims but have not established Tether’s actual contractual freeze authority or whether the lawsuit has advanced beyond filing. This checks independent reporting and Tether’s official terms for those specifics.
The earlier results summarize Conduit’s claims, but Tether’s official pages did not expose the relevant freeze clause. I’m checking the published terms and a current case update to distinguish Tether’s contractual control from what the lawsuit alleges or has decided.
Earlier reporting identifies Conduit's complaint and its requested relief, but no court ruling or Tether response has been established. I’m checking fresh reporting and case references for a later development that would show what the case says about issuer freeze authority.
The prior results summarize Conduit’s allegations but do not show whether Tether has responded or whether the court has ruled on its freeze authority. I’m checking current news coverage and public discussion for developments after the complaint was filed.