Conduit Sues Tether Over Frozen $2.76M, Citing Brazilian Probe It Wasn’t Part Of

The dispute turns on a familiar tension in stablecoin issuance: centralized freeze powers let an issuer act on a foreign law-enforcement probe without a court order, leaving the affected holder to seek relief after the fact. Conduit's claim that it was never a target, and that the freeze caused layoffs, puts the operational cost of those powers on the record rather than in the abstract. Whether the freeze's basis holds up in New York, and how issuers weigh foreign investigations against holder recourse, is the open question.