Thai Businessmen Sue Tether Over $42M Frozen in Pig Butchering Scam

Two Thai businessmen have filed suit against Tether in a New York district court, alleging the stablecoin issuer illegally froze $42.4 million in USDT without a warrant in October 2025. The freeze followed an informal request from U.S. Homeland Security Investigations, with a formal seizure warrant from authorities in the Eastern District of North Carolina not arriving until February 2026. The lawsuit stems from a broader $61 million pig butchering investment scam and is testing the legal authority of stablecoin issuers to freeze customer funds. While the plaintiffs did not deny their involvement in the scheme, they are challenging the procedural basis of the freeze.

Thailand is tightening crypto regulation on multiple fronts. The country's Securities and Exchange Commission has introduced new Travel Rule requirements that will take effect February 27, 2027, mandating digital asset operators to collect identifying information for both parties in crypto transfers, including those involving self-custodial wallets. Separately, the Thai SEC has proposed allowing retail investors access to certain digital asset derivatives traded on overseas exchanges, provided those products mirror domestically traded derivatives in underlying assets, maturity, leverage, and settlement. The consultation period runs through September 30.

Meanwhile, Pencil Finance has completed a $1 million onchain student lending cycle, providing financing to 6,600 students across 118 schools and universities in Southeast Asia. Approximately 1,050 students received direct funding, with the platform targeting borrowers underserved by traditional lending institutions. The initiative highlights a growing use case for blockchain-based credit infrastructure in emerging markets where conventional financial services remain limited.