Tether Faces Lawsuit as Regional Regulators Tighten Rules

Two Thai businessmen have filed a lawsuit against stablecoin issuer Tether in a New York court, alleging the company wrongfully froze over $42 million in USDT tied to a pig butchering investment scam. The funds were reportedly frozen in late 2025 following a request from US investigators, though a formal seizure warrant wasn’t issued until months later.

Regional Regulators Move on Crypto Oversight

Thailand introduced new Travel Rule requirements covering crypto transfers, including self-custodial wallets, set to take effect in 2027. Meanwhile, Australian regulators warned unlicensed crypto firms they could face fines up to 10% of annual turnover if they miss an upcoming licensing deadline. Singapore is also considering recognizing certain foreign-issued stablecoins under its regulatory framework.

Notable Business Developments Across Asia

Standard Chartered launched institutional Bitcoin and Ether trading in the UAE, while a Southeast Asian fintech completed a fully onchain student loan program benefiting thousands of students. Japanese and Hong Kong firms also expanded crypto partnerships and custody services this week.