The company blocked the funds in October 2025 after an unofficial request from the U.S. Homeland Security Investigations agency. The plaintiffs claim that U.S. authorities did not issue a seizure order until February 2026. The freeze took place as part of an investigation into a $61 million fraudulent scheme. The order instructed that the tokens be burned and reissued to a government electronic wallet.
At the same time, the plaintiffs do not dispute their involvement in the investment fraud scheme. They are challenging the authority of stablecoin issuers to freeze funds. In addition, they are demanding that their assets be unfrozen and that any potential penalties be paid out to them. This week, Thailand’s SEC issued new cryptocurrency rules aimed at preventing money laundering. They will come into effect on February 27, 2027.