Two Thai Businessmen Sue Tether Over $42.4M USDT Freeze as Issuer Calls Case ‘Baseless’

Thai plaintiffs challenge Tether's $42.4 million USDT freeze, which appears connected to an HSI investigation into pig-butchering fraud proceeds. Tether is facing a lawsuit in the Southern District of New York over the freeze of $42.4 million in USDT belonging to two Thai businessmen, Nutthawat Rukthammachalern and Natthawat Kasamvilas. The plaintiffs allege that Tether blacklisted their Ethereum addresses in late October 2025 after receiving an informal request from an agent with the US Department of Homeland Security (HSI). A total of 42.4 million USDT was frozen. According to the businessmen, the stablecoin issuer took the action without a warrant, court order, or notice to them. Funds Linked to Pig-Butchering Investigation According to an update from Attorney Ariel Givner, the funds appear to be connected to an HSI Raleigh investigation into a pig-butchering case. The investigation began after a victim tip involving romance and investment fraud, a fake trading platform, and the movement of stolen USDT through multiple wallets in an effort to make the funds appear clean. One of the wallets linked to the plaintiffs held about $26.1 million and had already been identified as a con...