Victims of Iranian Terror Attacks Seek Court Order to Force Tether to Confiscate $344 Million in Frozen USDT

Odaily A group of plaintiffs holding U.S. court judgments related to Iranian terrorism filed a motion on Thursday in the U.S. District Court for the Southern District of New York, asking the judge to force Tether to zero out approximately 344.1 million USDT currently held in two wallet addresses linked to the Islamic Revolutionary Guard Corps (IRGC), which have been sanctioned by OFAC. The plaintiffs request that an equivalent amount of USDT be reissued to their designated wallet.

The plaintiffs argue that Tether possesses the technical capability and has a corresponding legal obligation under New York’s turnover law and federal anti-terrorism enforcement regulations. They cite Tether’s previous cooperation with FBI seizure orders and a case in Ohio, where Tether carried out token destruction and reissuance. The total judgment amount the plaintiffs seek to enforce is approximately $2.42 billion, covering compensatory and punitive damages from multiple cases involving Iranian terrorism over more than two decades. Tether froze the relevant wallets on April 24 of this year, the same day OFAC added them to its sanctions list. (The Block)