Thai businessmen sue Tether for freezing $42M in $61M pig butchering case
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Two Thai businessmen filed a lawsuit against stablecoin issuer Tether in a New York district court, alleging that Tether illegally froze $42.4 million in USDT without a warrant in October 2025. The freeze was related to a larger $61 million pig butchering scam case. The plaintiffs contend that Tether acted on an informal request from US Homeland Security Investigations before receiving a formal seizure warrant in February 2026.
Why it matters
The lawsuit questions the legal authority of stablecoin issuers like Tether to freeze, burn, or reissue tokens without a formal warrant. This case could set a precedent for how centralized stablecoin providers handle law enforcement requests and impact secondary-market holders’ rights. The source does not explicitly explain other broader consequences for markets or policy.
Key context
The frozen funds were part of a pig butchering investment scam investigation led by authorities in the Eastern District of North Carolina. The formal seizure warrant, issued several months after Tether’s action, directed that the seized tokens be burned and reissued to a government-controlled wallet. The plaintiffs do not dispute their involvement in the scam but challenge the timing and legality of Tether’s freeze.
Key numbers and entities
The $42.4 million frozen sum is out of a total $61 million involved in the pig butchering case. The lawsuit was filed by two unnamed Thai businessmen. The stablecoin issuer involved is Tether, specifically related to Tether USDt (USDT). US Homeland Security Investigations and the Eastern District of North Carolina authorities are also key entities.
What remains unclear
The source does not specify the final outcome or current status of the lawsuit. It also remains unclear what exact legal boundaries exist for stablecoin issuers regarding freezing or burning tokens prior to receiving a formal warrant. The identities of the plaintiffs and further details on the broader pig butchering scheme are not disclosed.