Cross-border payments platform Conduit Technology, Inc. has sued four Tether entities in the US District Court for the Southern District of New York over approximately $2.76 million in USDT frozen on September 24, 2025. Conduit says the wallet held its own working capital, not customer funds, and that Brazilian Federal Police said it neither identified the wallet for freezing nor knew the criteria Tether used to block it. The company links the action to a Brazilian investigation launched in June 2024 into individuals and entities related to Bull Intermediação de Negócios, while maintaining it had no involvement in that probe. Conduit seeks an order unfreezing the wallet, at least $2.76 million in damages and disgorgement of interest Tether earned from reserves backing the frozen tokens. The complaint says Tether continues investing those dollar reserves, predominantly in US Treasury securities. The case remains at the complaint stage, and Conduit's allegations have not been tested in court.