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Tether sued over frozen ‘pig butcher’ coins, 6,600 students get crypto loans: Asia Express
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- DeepHorus
Two Thai businessmen have filed a lawsuit against stablecoin issuer Tether in a New York district court, alleging it illegally froze $42.4 million in Tether USDt (USDT) without a warrant. The plaintiffs claim the freeze occurred in October 2025 following an informal request from U.S. Homeland Security Investigations, while a formal seizure warrant was only issued by authorities in the Eastern District of North Carolina in February 2026. This case tests the legal boundaries of stablecoin issuers' authority to freeze assets.
The lawsuit arises from a broader investigation into a pig butchering scam, a type of long-con investment fraud. While the plaintiffs do not dispute their involvement in the investment scam, they are challenging the procedure Tether used to freeze their assets. The case highlights the growing tension between decentralized cryptocurrency ideals and the need for regulatory compliance and law enforcement cooperation.
The legal action comes as Thailand simultaneously moves to tighten its own cryptocurrency oversight. The country's Securities and Exchange Commission (SEC) has issued new Travel Rule regulations, effective February 27, 2027. These rules will require digital asset operators to collect sender and receiver information for crypto transfers, including those involving self-custodial wallets, aligning Thailand with global Anti-Money Laundering standards.
Further demonstrating Asia's evolving crypto landscape, Thailand's SEC has also proposed allowing retail investors access to regulated overseas crypto derivatives. The proposal suggests that eligible products must resemble those traded in Thailand and operate on exchanges with central counterparty clearing and oversight from recognized international regulatory bodies. A public consultation on this proposal remains open until September 30.
Meanwhile, in a significant development for crypto-based social impact, Pencil Finance has completed a $1 million onchain lending cycle for students in Southeast Asia. The program provided financing to 6,600 students across 118 schools, with about 1,050 receiving direct funding. Notably, 50% of the borrowers were female, and 93% came from lower-income households, marking what Pencil claims is the first fully onchain lending cycle for student loans recorded transparently on blockchain.
The region is also seeing strategic moves in crypto infrastructure. Ripple has partnered with SettleMint to offer institutional solutions for tokenized asset custody and management. In Japan, Coincheck Group has teamed up with DFNS to develop digital asset wallet technology and custody services.
Looking ahead, the Monetary Authority of Singapore (MAS) is weighing a significant shift in its stance on stablecoins. The regulator is considering recognizing some foreign-issued stablecoins and allowing jointly issued tokens between Singapore and foreign issuers to qualify under its framework as "MAS-regulated stablecoins." This move could reshape the regulatory landscape for stablecoins in one of Asia's key financial hubs.
