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A lawsuit filed by Thai businessmen against Tether puts $42 million in frozen USDT at the center of a legal challenge to a stablecoin issuer's coin-freeze authority.
The complaint ties the locked funds to a pig butchering scam and argues that Tether should be held responsible. The plaintiffs are Thai businessmen claiming the coins are theirs.
Tether froze the $42 million in USDT in connection with the pig butchering scheme, and the suit asks whether the issuer carries liability when a freeze lands on funds claimed by parties outside the fraud itself.
That is not settled territory for stablecoin issuers. Freeze authority has been treated as a compliance feature, a mechanism for responding to law enforcement requests and fraud reports.
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