Written by Zoltan Vardaistaff writerReviewed by Robert Lakinstaff editor

Written by Zoltan Vardaistaff writer

Reviewed by Robert Lakinstaff editor

Thai businessmen sue Tether for freezing $42M in $61M pig butchering case

Latest NewsPublishedSep 2, 2026

The plaintiffs didn’t dispute their involvement in the pig butchering scam, but claimed that Tether did not have the authority to freeze the $42 million at the time.

Two Thai businessmen sued stablecoin issuer Tether in a New York district court, claiming it illegally froze $42.4 million in Tether USDt (USDT) in October, as part of a broader case tied to a pig butchering scheme.

In a Monday court filing, the plaintiffs claimed that Tether illegally froze the $42 million without a warrant in October 2025, following an informal request from US Homeland Security Investigations.

Authorities in the Eastern District of North Carolina only issued a seizure warrant for the funds later in February 2026, as part of a $61 million pig butchering case. The warrant directed the burn and reissuance of the tokens to a government wallet. 

While the plaintiffs didn’t dispute their involvement in the investment scam, the lawsuit tests the freezing authority of stablecoin issuers. It also requests that authorities unfreeze the funds and pay potential punitive damages. 

“The complaint is NOT denying that the government claims these coins are scam proceeds. It is saying Tether locked secondary-market holders first, kept earning Treasury yield on the reserves, and only later received a warrant that still does not, in plaintiffs’ view, authorize a private issuer to freeze, burn, or reissue their tokens,” wrote corporate and intellectual property attorney Ariel Givner in a Wednesday X post.

In a separate case in February, a US court sentenced a dual national of China and St. Kitts and Nevis to 20 years in prison for orchestrating a $73 million pig butchering scam.

Related: Lazarus Group-linked addresses move $30M through Hyperliquid

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

• Scams
• Hackers
• Hacks
• Law
• Court
• Thailand
• Tether
• Stablecoin
• Scams & Cybercrime

More on the subject

Fake Claude desktop app spreads crypto-stealing malware

22 hours ago

Adrian Zmudzinski

Lazarus Group-linked addresses move $30M through Hyperliquid

Sep 1, 2026

Zoltan Vardai

More Markets lending reserve drained for $9.3M: Blockaid

Aug 31, 2026

Zoltan Vardai

Fake Claude desktop app spreads crypto-stealing malware

22 hours ago

Adrian Zmudzinski

Lazarus Group-linked addresses move $30M through Hyperliquid

Sep 1, 2026

Zoltan Vardai

More Markets lending reserve drained for $9.3M: Blockaid

Aug 31, 2026

Zoltan Vardai