US Terror Attack Victims Request Court to Force Tether to Transfer $344 Million Frozen USDT

BlockBeats News, May 15, a group of holders of judgments related to Iranian terrorism has filed a motion in the U.S. Federal Court seeking to compel Tether to transfer its 3.4415 billion USDT (about $3.44 billion) frozen in an OFAC sanctioned address.

The filing was made to the Southern District of New York Federal Court, with the plaintiffs claiming that this USDT corresponds to approximately $24.2 billion in existing judgment compensation involving Iranian and Islamic Revolutionary Guard Corps (IRGC)-related entities.

The plaintiffs argue that Tether not only has the technical ability, but also, pursuant to New York's Execution Law and relevant anti-terrorism judgment enforcement regulations, has the obligation to "zero out" the balance of the sanctioned address and reissue an equivalent amount of USDT to a designated wallet.

The legal document points out that Tether has previously carried out similar operations in multiple law enforcement actions, including an asset seizure case in November 2025 in cooperation with the FBI, and a precedent in an Ohio case in April 2025 of "zeroing out and reissuing" stablecoins to a law enforcement-controlled address.

The motion essentially aims to transition the stablecoin issuer from a "frozen asset" role to a "technical execution entity for court-ordered asset transfer and reissue," sparking further discussions in the market on the legal attributes and enforcement boundaries of stablecoins.