Two Thai nationals operating a legal gaming business had $42.4 million in Ethereum wallets frozen by Tether in October 2025 based on an unwarranted request from a US Homeland Security agent investigating an unrelated $30,000 romance scam. No criminal charges have been filed against them, yet their funds remain frozen while Tether profits from the frozen reserves, prompting litigation alleging conversion and unjust enrichment.
Two Thai nationals had $42.4 million in Tether stablecoins frozen in October 2025 after a Homeland Security agent requested the freeze via phone call, without a warrant or court order, based on an investigation into a $30,000 romance scam with no demonstrated connection to their wallets. As of 2026, no criminal charges have been filed against them, yet their funds remain frozen while Tether earns yield on the reserves backing those tokens.