Tether Faces Lawsuit Over Alleged Unlawful USDT Freeze

According to BlockBeats, Tether, a prominent stablecoin issuer, is facing legal action from Texas-based Riverstone Consulting. The lawsuit, filed in the Southern District of New York, accuses Tether of unlawfully freezing $44.7 million in USDT, which allegedly caused Riverstone to miss significant investment opportunities. The incident dates back to April when Tether froze assets in eight offline wallets controlled by Riverstone at the request of Bulgarian police. Riverstone argues that Tether's actions were procedurally flawed, as they did not adhere to the formal processes outlined in the Bulgarian International Judicial Assistance Treaty. This treaty mandates that information exchanges must occur through central authorities and diplomatic channels. Riverstone claims that when they reached out to Tether for clarification, they were instructed to communicate directly with Bulgarian authorities, who reportedly did not respond. As of September 15, Tether has collaborated with global law enforcement agencies to freeze $3.2 billion in USDT, with the stablecoin's circulation exceeding $180 billion.