Conduit Sues Tether Over $2.76M Frozen USDT, Alleges Unlawful Freeze
CDT sits 20% above its 52-week low of $0.85 on elevated volume (5.1× avg).
Summary
Conduit, a cross-border payments company, has sued Tether in the Southern District of New York over $2.76 million in frozen USDT. The funds have been locked for over a year, and Conduit claims Tether has refused to release them or explain the action. The freeze was allegedly linked to a Brazilian federal police investigation involving former client Onix Intermediações, but Conduit says law enforcement confirmed it never requested the freeze and Brazilian courts confirmed Conduit was not under investigation. The frozen wallet was used as Conduit's operating bank account, and the freeze has affected its business while Tether continues to earn interest on the reserves. This is the first report of this lawsuit in the timeline, and it adds a new legal risk for CDT Equity, which is already facing severe financial distress including a going concern warning and extreme dilution.
At the time of this announcement, CDT was trading at $1.02 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $1M. The 52-week trading range was $0.85 to $44,450.00. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Binance News.