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      Thai Businessmen Sue Tether Over $42.4 Million Fund Freeze

      Two Thai businessmen, Nutthawat Rukthammachalern and Natthawat Kasamvilas, have filed a lawsuit against Tether, claiming the company unlawfully froze $42.4 million worth of USDT across ten Ethereum addresses. The complaint was initially filed in the Southern District of New York on August 31 and re-filed the next day. The addresses in question were blacklisted on October 30, 2025, three months prior to a seizure warrant dated February 19, 2026, referenced in the lawsuit.

      The plaintiffs assert that they purchased the USDT on the secondary market and have no direct contractual relationship with Tether. Tether's terms of service allow the company to freeze tokens at its discretion or as required by law. However, the lawsuit contends that Tether acted on an informal request from U.S. authorities before any formal warrant was issued, and that the company failed to disclose its actions to Kasamvilas when contacted.

      The lawsuit includes five counts, including conversion and unjust enrichment, and names four Tether entities as defendants. Judge Lewis J. Liman is overseeing the case, with summonses issued to the defendants on September 1. Tether has not yet responded to the lawsuit. The company has previously stated that it has frozen over $4.4 billion in assets in cooperation with law enforcement globally, emphasizing its commitment to preventing the misuse of USDT.

      As of Thursday morning, USDT was trading at approximately $0.9996, with a market capitalization of $183.3 billion, making it the third-largest cryptocurrency. The amount in dispute represents about 0.02% of Tether's total supply.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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