{"id":79155,"date":"2026-10-06T21:40:08","date_gmt":"2026-10-06T21:40:08","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/conduit-sues-tether-over-a-2-76m-usdt-wallet-frozen-for-a-year\/"},"modified":"2026-10-06T21:40:08","modified_gmt":"2026-10-06T21:40:08","slug":"conduit-sues-tether-over-a-2-76m-usdt-wallet-frozen-for-a-year","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/conduit-sues-tether-over-a-2-76m-usdt-wallet-frozen-for-a-year\/","title":{"rendered":"Conduit Sues Tether Over a $2.76M USDT Wallet Frozen for a Year"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Conduit says Tether froze $2.76M in USDT without a police request.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Tether faces six claims as Conduit fights to regain its working capital.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Conduit wants its $2.76M unfrozen plus profits tied to Tether\u2019s reserves.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p>Conduit Technology has taken <a href=\"https:\/\/news.bitcoin.com\/regulation-and-legal\/tether-and-senate-democrats-clash-over-irans-shadow-crypto-network\/\">the stablecoin issuer Tether<\/a> to federal court over a $2.76 million USDT freeze that has lasted more than a year, arguing the stablecoin giant effectively seized working capital it had no right to touch. Conduit claims that Brazilian authorities investigating an unrelated company never identified its treasury wallet for freezing. Instead, according to the complaint, Tether\u2019s own financial crime unit picked the address using its own undisclosed criteria.<\/p>\n<p>\u201cTether acted on its own initiative, through its T3 Financial Crime Unit, based on its own private criteria,\u201d <a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.674398\/gov.uscourts.nysd.674398.1.0.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">the legal complaint states<\/a>.<\/p>\n<p>Bitcoin.com News reached out to a Tether spokesperson for comment but did not immediately receive a response.<\/p>\n<h2>A $2.76 Million Wallet Goes Dark<\/h2>\n<p>Conduit says it created the Fireblocks wallet in May 2025 in order to hold the company\u2019s working capital. Before Tether froze it on Sept. 24, 2025, the wallet had processed 4,427 transactions involving 78 counterparties and more than $1.1 billion in volume. At press time on Oct. 6, the <a href=\"https:\/\/tronscan.org\/address\/TMk5ji4vTGZG8E1RnKEYvaK6kgNobLSTtE\/transactions\" target=\"_blank\" rel=\"noopener noreferrer\">Tron wallet that holds the stablecoin cache<\/a> commands a modest $33 in TRX and $2.756 million in Tron-based USDT.<\/p>\n<figure id=\"attachment_853888\" aria-describedby=\"caption-attachment-853888\" style=\"width:1358px\" class=\"wp-caption aligncenter\"><figcaption id=\"caption-attachment-853888\" class=\"wp-caption-text\">Tron Scan screenshot of the address named in the complaint as of Oct. 6, 2026.<\/figcaption><\/figure>\n<p>The plaintiff\u2019s attorneys say Tether repeatedly directed Conduit toward Brazil\u2019s Federal Police, according to the complaint. Except there was a problem: Conduit alleges police confirmed its wallet wasn\u2019t among the addresses they had identified in an investigation involving Onix Intermedia\u00e7\u00f5es.<\/p>\n<p>The complaint states<\/p>\n<blockquote>\n<p>\u201cTether is not allowed to take money from businesses just because they chose to store that money in Tether\u2019s currency.\u201d<\/p>\n<\/blockquote>\n<h2>Conduit Wants More Than an Unfreeze<\/h2>\n<p>Conduit argues <a href=\"https:\/\/news.bitcoin.com\/chainalysis-maps-iran-stablecoin-pipeline-behind-344m-usdt-freeze\/\">the stablecoin freeze<\/a> deprived it of a substantial chunk of working capital, reducing its ability to pre-fund transactions. The company says the financial strain eventually forced it to lay off employees and close offices.<\/p>\n<p>The lawsuit brings six claims, including conversion, unjust enrichment, breach of fiduciary duty, and computer fraud. Conduit wants its wallet unfrozen, damages of at least $2.76 million, and an accounting of the income Tether allegedly earned from reserves backing the frozen USDT. It also wants those profits disgorged.<\/p>\n<p>That leaves a potentially consequential <a href=\"https:\/\/news.bitcoin.com\/what-are-stablecoins-a-simple-explanation-of-the-digital-asset-bridging-crypto-and-fiat\/\">question for stablecoins<\/a>. Having the technical power to freeze somebody\u2019s tokens is one thing. Conduit is asking a federal court to decide when an issuer legally gets to use it.<\/p>\n<div class=\"not-prose my-3 lg:my-4\">\n<div class=\"overflow-hidden rounded-lg !bg-[#E8EDFA] p-[9px] hidden md:flex md:flex-row md:gap-3 lg:hidden\"><a aria-hidden=\"true\" tabindex=\"-1\" class=\"relative size-[150px] min-w-[150px] shrink-0 overflow-hidden rounded-[15px]\" href=\"https:\/\/news.bitcoin.com\/fortitude-bets-100-million-bitmain-zcash-mining-hardware\/\"><img alt=\"Fortitude Bets Up to $100 Million on Bitmain Zcash Mining Hardware\" loading=\"lazy\" decoding=\"async\" data-nimg=\"fill\" class=\"object-cover\" style=\"position:absolute;height:100%;width:100%;left:0;top:0;right:0;bottom:0;color:transparent\" sizes=\"150px\" srcset=\"\/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=32&amp;q=75 32w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=48&amp;q=75 48w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=64&amp;q=75 64w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=128&amp;q=75 128w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=256&amp;q=75 256w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=384&amp;q=75 384w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=640&amp;q=75 640w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=828&amp;q=75 828w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=1080&amp;q=75 1080w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=1200&amp;q=75 1200w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=1920&amp;q=75 1920w\" src=\"https:\/\/news.bitcoin.com\/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=1920&amp;q=75\"\/><\/p>\n<div class=\"absolute left-2 top-2\"><img alt=\"Bitcoin.com News\" loading=\"lazy\" width=\"28\" height=\"28\" decoding=\"async\" data-nimg=\"1\" class=\"size-7\" style=\"color:transparent\" srcset=\"\/_next\/image\/?url=%2Fimages%2Fuploads%2Fbitcoin_news_newlogo.svg&amp;w=32&amp;q=75 1x, \/_next\/image\/?url=%2Fimages%2Fuploads%2Fbitcoin_news_newlogo.svg&amp;w=64&amp;q=75 2x\" src=\"https:\/\/news.bitcoin.com\/_next\/image\/?url=%2Fimages%2Fuploads%2Fbitcoin_news_newlogo.svg&amp;w=64&amp;q=75\"\/><\/div>\n<p><\/a><\/div>\n<div class=\"overflow-hidden rounded-lg !bg-[#E8EDFA] p-[9px] hidden lg:flex lg:flex-row lg:gap-4\"><a aria-hidden=\"true\" tabindex=\"-1\" class=\"relative size-[150px] min-w-[150px] shrink-0 overflow-hidden rounded-[15px]\" href=\"https:\/\/news.bitcoin.com\/fortitude-bets-100-million-bitmain-zcash-mining-hardware\/\"><img alt=\"Fortitude Bets Up to $100 Million on Bitmain Zcash Mining Hardware\" loading=\"lazy\" decoding=\"async\" data-nimg=\"fill\" class=\"object-cover\" style=\"position:absolute;height:100%;width:100%;left:0;top:0;right:0;bottom:0;color:transparent\" sizes=\"150px\" srcset=\"\/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=32&amp;q=75 32w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=48&amp;q=75 48w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=64&amp;q=75 64w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=128&amp;q=75 128w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=256&amp;q=75 256w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=384&amp;q=75 384w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=640&amp;q=75 640w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=828&amp;q=75 828w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=1080&amp;q=75 1080w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=1200&amp;q=75 1200w, \/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=1920&amp;q=75 1920w\" src=\"https:\/\/news.bitcoin.com\/_next\/image\/?url=https%3A%2F%2Fstatic.news.bitcoin.com%2Fwp-content%2Fuploads%2F2026%2F10%2Ffortitude-bets-up-to-100-million-on-bitmain-zcash-mining-hardware-150x150.jpg&amp;w=1920&amp;q=75\"\/><\/p>\n<div class=\"absolute left-2 top-2\"><img alt=\"Bitcoin.com News\" loading=\"lazy\" width=\"28\" height=\"28\" decoding=\"async\" data-nimg=\"1\" class=\"size-7\" style=\"color:transparent\" srcset=\"\/_next\/image\/?url=%2Fimages%2Fuploads%2Fbitcoin_news_newlogo.svg&amp;w=32&amp;q=75 1x, \/_next\/image\/?url=%2Fimages%2Fuploads%2Fbitcoin_news_newlogo.svg&amp;w=64&amp;q=75 2x\" src=\"https:\/\/news.bitcoin.com\/_next\/image\/?url=%2Fimages%2Fuploads%2Fbitcoin_news_newlogo.svg&amp;w=64&amp;q=75\"\/><\/div>\n<p><\/a><\/p>\n<div class=\"flex min-w-0 flex-1 flex-col justify-center gap-2\">\n<p class=\"m-0 line-clamp-2 text-base leading-[1.3] !text-[#67656E]\">Fortitude Mining has signed a non-binding agreement for up to $100 million of Bitmain\u2019s next-generation zcash mining hardware, securing priority\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/regulation-and-legal\/conduit-sues-tether-2-76m-usdt-wallet-frozen\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways Conduit says Tether froze $2.76M in USDT without a police request. Tether faces six claims as Conduit fights to regain its working capital. Conduit wants its $2.76M unfrozen plus profits tied to Tether\u2019s reserves. Conduit Technology has taken the stablecoin issuer Tether to federal court over [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":79156,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/79155"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=79155"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/79155\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/79156"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=79155"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=79155"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=79155"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}