Tether Urged To Transfer $344M In Frozen USDT To Terror Victims

bitcoinistPubblicato 2026-05-16Pubblicato ultima volta 2026-05-16

Introduzione

A US federal court in Manhattan is being asked to order Tether to transfer $344 million in frozen USDT to victims of Iran-linked terrorist attacks. The plaintiffs, including a Jerusalem family affected by a 1997 Hamas bombing, hold unpaid court judgments against Iran. They target two Tron blockchain wallets, frozen earlier this year by the US Treasury's OFAC as linked to Iran's Islamic Revolutionary Guard Corps. Their lawsuit argues that because Tether, as a centralized issuer, can freeze wallets, it can also be compelled by court order to move the equivalent funds to satisfy the judgments. This case could set a significant legal precedent for centralized stablecoin issuers and is part of a broader legal campaign targeting frozen crypto assets linked to sanctioned entities.

A Jerusalem family that lost relatives in a 1997 Hamas suicide bombing is among the plaintiffs pushing a US federal court to order Tether to hand over hundreds of millions in frozen digital currency.

The case, filed in Manhattan, could set a significant legal precedent for how courts treat centralized stablecoin issuers.

A Decades-Old Debt

The plaintiffs are survivors and family members of victims from Iran-linked terrorist attacks. They hold court judgments against Iran that were awarded years ago — judgments that have never been paid.

Now they are targeting a pile of frozen cryptocurrency as a way to collect what they are owed.

Attorney Charles Gerstein filed the lawsuit Thursday in the US District Court for the Southern District of New York.

Filing against Tether submitted by Attorney Charles Gerstein.

His clients say they have a legal claim to two Tron blockchain wallet addresses holding roughly 344 million USDT. Those wallets were frozen earlier this year by the US Treasury Department’s Office of Foreign Assets Control, which identified them as linked to Iran’s Islamic Revolutionary Guard Corps.

The plaintiffs are not asking Tether to simply release those specific wallets. According to reports, they want a court order directing Tether to transfer an equivalent amount of USDT to their legal team’s wallet address.

Why Tether Can Be Compelled

Unlike Bitcoin or Ethereum, USDT is controlled by a central company. Tether can freeze wallets, block transactions, and move funds when ordered to do so. That centralized structure is at the heart of Gerstein’s legal argument.

Because a prior order already froze the wallets — something only possible because Tether has direct operational control — he contends the company can also be ordered to move the funds.

BTCUSD trading at $78,115 on the 24-hour chart: TradingView

The ownership question, he argues, is already largely settled: OFAC has already declared the wallets to be IRGC-controlled assets, which clears a path for seizure under US terrorism statutes.

Broader Legal Campaign

This is not Gerstein’s only case of this kind. Based on reports, he has filed similar actions involving North Korea-linked cyber operations against the Arbitrum platform. He is also handling a separate case involving Railgun DAO, a privacy-focused crypto protocol.

The Manhattan filing is part of what appears to be a coordinated legal push to test whether courts can compel crypto platforms with centralized control to act on frozen assets held in sanctioned wallets.

Featured image from CEPA, chart from TradingView

Domande pertinenti

QWhat is the plaintiffs' primary demand to Tether in this case?

AThe plaintiffs are asking the US federal court to order Tether to transfer approximately $344 million worth of frozen USDT (an equivalent amount to the funds in two sanctioned wallet addresses) to a wallet address controlled by their legal team.

QWhat is the legal basis for Attorney Charles Gerstein's argument that Tether can be compelled to move the funds?

AThe argument hinges on Tether's centralized control over USDT. Gerstein contends that because Tether can and has frozen the specific wallets (as ordered by OFAC), demonstrating direct operational control, the company can similarly be ordered by a court to move the funds.

QWhat entity froze the Tron blockchain wallets containing the 344 million USDT, and why were they frozen?

AThe wallets were frozen earlier this year by the US Treasury Department's Office of Foreign Assets Control (OFAC), which identified them as assets linked to Iran's Islamic Revolutionary Guard Corps (IRGC).

QWho are the plaintiffs in this lawsuit against Tether?

AThe plaintiffs are survivors and family members of victims from Iran-linked terrorist attacks, including a Jerusalem family that lost relatives in a 1997 Hamas suicide bombing. They hold unpaid court judgments against Iran.

QWhat potential legal significance does this case hold beyond the immediate dispute?

AThe case could set a significant legal precedent for how US courts treat centralized stablecoin issuers, testing whether courts can compel such platforms to act on frozen assets held in wallets linked to sanctioned entities under terrorism statutes.

Letture associate

Crypto Report Card: How Institutional Investors Allocated Capital In Q1 2026

In Q1 2026, institutional investors exhibited mixed strategies amid a volatile crypto market where Bitcoin fell to around $62,000 in early February. Notable moves included Abu Dhabi’s Mubadala Investment Company significantly increasing its stake in BlackRock's iShares Bitcoin Trust (IBIT), with holdings reaching about $566 million. Several traditional financial institutions, such as the Royal Bank of Canada and Barclays, also expanded crypto exposure while hedging risks with options. In contrast, Harvard University’s endowment fund continued reducing its IBIT position, cutting it by 43% and liquidating its Ether ETF holdings entirely. Other Ivy League endowments like Brown and Dartmouth held steady, though Dartmouth shifted its Ether exposure into a staking ETF and entered a new position in a Solana ETF. Overall, institutional activity suggests many viewed the market’s underperformance as a buying opportunity rather than a loss of long-term faith. The crypto market cap stood at approximately $2.57 trillion, down over 12% year-to-date in 2026.

bitcoinist10 min fa

Crypto Report Card: How Institutional Investors Allocated Capital In Q1 2026

bitcoinist10 min fa

Bitcoin Crowd Euphoria Hits Highest Level Of 2026 After CLARITY Act Progress

Bitcoin surged over 3.5% after the US Senate Banking Committee advanced the CLARITY Act, a crypto regulation bill aimed at providing clearer rules. This news drove Bitcoin crowd sentiment to its most euphoric (or "greediest") level of the year, which on-chain analytics firm Santiment notes is a long-term bullish signal due to increased investor certainty. However, Santiment cautions that such extreme optimism historically precedes short-term bearish pressure, as markets often move opposite to crowd frenzy. Separately, market analyst Ali Martinez reported Bitcoin miners sold approximately 800 BTC (around $64 million) over 96 hours, adding potential near-term selling pressure. While miner selling is not massive, spikes in their outflows have historically preceded price weakness or consolidation. Combining excessive euphoria with miner selling suggests Bitcoin may face corrective movement. At press time, Bitcoin traded at $79,136, down 2.9% in 24 hours.

bitcoinist3 h fa

Bitcoin Crowd Euphoria Hits Highest Level Of 2026 After CLARITY Act Progress

bitcoinist3 h fa

Will The Passage Of The CLARITY Act Be Good For XRP Price? Why $50 Could Be The Minimum

The passage of the CLARITY Act in 2026 is viewed as a potential major catalyst for XRP's price. An analysis based on the quantity theory of money (MV=PQ) models various price scenarios depending on XRP's adoption level for regulated settlement and liquidity flows. A minimal use case, handling a small portion of cross-border transactions, could establish a price floor around $50. More extensive integration, such as bridging repo cash legs and collateral, could push prices to approximately $280. With supply compression from derivatives locking tokens, a "Structural Base Case" suggests a price near $415. A "Full Integration" scenario, where XRP is used across all major settlement positions, projects a range from $700 to $1,400. The CLARITY Act has passed the House and cleared a Senate committee, with a potential Senate vote and White House target for enactment by July 4, 2025.

bitcoinist5 h fa

Will The Passage Of The CLARITY Act Be Good For XRP Price? Why $50 Could Be The Minimum

bitcoinist5 h fa

MY Group Completes Web4.0 First Stock Listing Layout, SEC Officially Discloses Form 8-K Announcement

MY Group has completed the listing layout for the "Web4.0 First Share," with the U.S. Securities and Exchange Commission (SEC) formally disclosing a Form 8-K report. According to the filing, the company's board has officially appointed Mr. Zhang Dingwen as Chief Executive Officer (CEO) and Executive Director, marking a significant upgrade in management and the entry into a new phase of its global capital market strategy. The disclosure of Form 8-K, used for reporting major corporate events, coincides with market information indicating the company is advancing several key capital market initiatives. These include a global brand system upgrade, corporate strategic restructuring, and a change of its stock ticker symbol. These moves are viewed by industry experts as signals of accelerated internationalization and enhanced global market presence. Concurrently, MY Group's proposed "Web4.0 Ecosystem" is garnering market attention. The company is integrating core capabilities across social traffic portals, global payment systems, public blockchain infrastructure, digital asset trading, and AI-powered financial systems. Analysts suggest that by closing this ecosystem loop, MY Group has the potential to become a next-generation platform merging Web2 user scale with Web3 asset frameworks and AI financial capabilities. With the management upgrade finalized, the global brand strategy launched, and the stock ticker change pending, MY Group is positioning itself as a focal point in the global technology capital market as a potential leading Web4.0 platform enterprise.

marsbit9 h fa

MY Group Completes Web4.0 First Stock Listing Layout, SEC Officially Discloses Form 8-K Announcement

marsbit9 h fa

$10M Gone: Thorchain Exploit Triggers Security Fears Across DeFi

Blockchain tracker Arkham Intelligence has identified wallets linked to a THORChain exploit, holding approximately $3 million in Bitcoin and 216 ETH. On-chain investigator ZachXBT first reported the suspicious activity, estimating total losses now exceed $10 million. The attackers moved assets like USDT, USDC, and wrapped Bitcoin across multiple chains before converting to ETH. The cross-chain trading protocol was hit simultaneously on Bitcoin, Ethereum, BNB Chain, and Base. Security firm PeckShield confirmed the breach. Following the news, THORChain's native token RUNE dropped nearly 14%. The project's team had not issued a public statement at the time of reporting, increasing market anxiety. This incident highlights the recurring vulnerability of cross-chain infrastructure in DeFi, where complex code can create significant security risks. The stolen funds remain in the identified wallets for now.

bitcoinist9 h fa

$10M Gone: Thorchain Exploit Triggers Security Fears Across DeFi

bitcoinist9 h fa

Trading

Spot

Futures