On October 7, The Block reported that cross-border payment company Conduit Technology filed a lawsuit against Tether in the Southern District of New York on October 5, accusing it of freezing approximately $2.76 million USDT in the company's treasury wallet since September 24, 2025, without explanation for over a year. Conduit claims that the freeze originated from an investigation by the Brazilian Federal Police into entities such as BULL and Onix, but their wallet is not on the police's freeze list and has never held Onix funds. A Brazilian criminal court has also confirmed that they are not a subject of investigation; the freeze was actually initiated by Tether's T3 financial crime department based on its own standards. The wallet processed over $1.1 billion in transactions in the four months prior to the freeze, and the company was forced to lay off employees afterward. Conduit is seeking the unfreezing of the funds and claims at least $2.76 million plus interest on grounds of conversion, unjust enrichment, and computer fraud.