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

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 in October 2025 without a warrant. The plaintiffs, who acknowledged their involvement in a broader $61 million pig butchering investment scam, claim Tether acted on an informal request from US Homeland Security Investigations before authorities in the Eastern District of North Carolina issued a formal seizure warrant in February 2026. The warrant directed Tether to burn the frozen tokens and reissue them to a government-controlled wallet. The case is expected to test the legal authority of stablecoin issuers to unilaterally freeze user funds at the request of government agencies.

Separately, Thailand's Securities and Exchange Commission is moving to tighten oversight of crypto transactions, including transfers involving self-custodial wallets. New Travel Rule regulations will require digital asset operators to collect identifying information on both parties to any crypto transfer, bringing Thailand in line with global Anti-Money Laundering standards. The rules take effect on February 27, 2027. In a parallel move, the Thai SEC has proposed a framework allowing retail investors access to regulated overseas crypto derivatives, provided those products mirror domestic instruments in underlying assets, maturity, leverage, and settlement, and trade on exchanges overseen by approved international regulators. The consultation period runs through September 30.

Elsewhere in Asia, decentralized lending platform Pencil Finance has completed a $1 million onchain student loan cycle, reaching 6,600 students across 118 schools and universities in Southeast Asia. Of those borrowers, approximately 1,050 received direct onchain funding aimed at students underserved by traditional banking institutions. The milestone highlights growing adoption of crypto-based lending rails for emerging-market financial inclusion, as students across the region turn to blockchain-based alternatives where conventional credit infrastructure falls short.