Thai businessmen sue Tether over $42.4M blacklisted wallet freeze

Nutthawat Rukthammachalern and Natthawat Kasamvilas allege that Tether blacklisted ten of their Ethereum addresses on October 30, 2025, using the smart contract’s internal function to restrict all movement of the funds. According to the complaint, the plaintiffs discovered the freeze when a transaction failed and were subsequently directed by Tether to contact an HSI agent, rather than receiving a clear explanation of the legal process involved. The plaintiffs maintain they acquired the tokens through secondary-market business dealings and argue that Tether’s technical control over the blockchain does not grant it the legal authority to seize private property without a court order.

The case centers on the timeline of law enforcement intervention. While a federal magistrate judge in North Carolina eventually issued a seizure warrant on February 19, 2026, authorizing the burning and reissuance of funds linked to "pig-butchering" investment scams, the plaintiffs contend this warrant cannot retroactively justify the initial freeze months earlier. They are seeking injunctive relief to prevent the destruction of their tokens, along with compensatory and punitive damages for conversion and unjust enrichment. Tether, which has previously confirmed its cooperation in larger government operations involving over $61 million in assets, has not yet filed a public response to these specific allegations.