A Lawsuit Just Demanded Tether Hand Over $344 Million in Frozen Iranian Funds, Could This Rewrite Stablecoin Law?
An attorney seeks to force Tether to transfer $344 million in frozen USDT linked to Iran's Revolutionary Guard Corps to victims of terrorism.Summary
Attorney Charles Gerstein filed a lawsuit in Manhattan federal court seeking to compel Tether to transfer $344 million in USDT frozen at two Tron wallet addresses designated by OFAC as belonging to Iran's Islamic Revolutionary Guard Corps. The plaintiffs, who hold unpaid U.S. court judgments tied to Iranian-backed terrorism, argue that the frozen USDT constitutes blocked property subject to execution under federal law. They are asking the court to order Tether to zero out the blocked wallets and reissue an equivalent amount of USDT to a wallet controlled by their counsel. This legal bid is an expansion of Gerstein's earlier litigation targeting frozen funds in the North Korea-linked Arbitrum case. The case hinges on the argument that Tether's administrative freeze controls demonstrate both the technical capability and willingness to act unilaterally on holdings, and that administrative control over an asset is functionally equivalent to possession, creating liability to judgment creditors.
(Source：Cryptonews)