THORChain Co-Founder Says Tether Briefly Froze Network’s USDT Vaults

THORChain technical co founder Chad Barraford has accused Tether of blacklisting the network’s USDT vault addresses without any warning. In a post on X on Friday, he said about 1.45 million USDT across four wallets was frozen. Roughly two hours later, he reported that all the addresses had been unfrozen and that trading on the network could resume.

No Explanation From the Stablecoin Issuer

Before the funds were released, Barraford said the team had no idea why the decision was made and had received no contact from Tether ahead of the action. He added that THORChain was reaching out to the company to talk and hoped the freeze was an error or a misunderstanding. Requests for comment sent to Tether and THORChain did not draw an immediate reply.

Growing Legal Pressure Over Tether USDT Freezes

The incident comes as Tether faces other disputes over frozen funds. Earlier this week, cross border payments firm Conduit Technology filed a lawsuit claiming Tether froze $2.76 million in USDT held in a wallet connected to a 2024 investigation by Brazilian authorities.

Thai Nationals Sue Over $42.4 Million Freeze

In August, two Thai nationals also took legal action against the company. They allege Tether froze $42.4 million in USDT after what they describe as an informal request from US Homeland Security Investigations.