According to CoinMeta, cross-border payment company Conduit Technology filed a lawsuit against Tether in the Southern District Federal Court of New York on October 5th, accusing it of freezing approximately $2.76 million USDT in their financial wallet since September 2025, and that the funds have not been unfrozen to this day. Conduit claimed that the freeze was related to investigations by Brazilian police targeting entities such as Bull and Onix, but that Conduit was not part of the investigation, and their wallet was not included in the Brazilian police's freeze list. Tether claimed that they actively identified and froze the wallet through their subsidiary T3 Financial Crime Unit based on their own criteria. Conduit accused Tether of property misappropriation, unjust enrichment, breach of fiduciary duty, and computer fraud, and requested the court to order the unfreezing of the funds, as well as claiming at least $2.76 million and related losses, interest, and earnings.