Tether froze $44m in crypto for the Bulgarian police. A Texas firm is suing to get it back

Core Insights - Tether has frozen $44.7 million in USDT at the request of Bulgarian police, leading to a lawsuit from Riverstone Consultancy Inc. claiming illegal asset freezing [1][4] - The lawsuit highlights the challenges centralized stablecoin issuers face in balancing law enforcement requests with the need to protect legitimate users [2] - Tether's USDT is the largest stablecoin globally, with over $180 billion in circulation, and the company has frozen more than $3.2 billion in USDT as of mid-September [3] Legal Context - Riverstone alleges that Tether improperly froze assets without following the correct procedures outlined in Bulgarian treaties regarding asset seizure [5] - The lawsuit claims that Tether directed Riverstone to the Bulgarian police, which did not respond to inquiries about the asset freeze [5] Asset Analysis - Riverstone controls the frozen wallets on behalf of an unnamed client, and crypto forensic analysis suggests the funds may be linked to fraudulent activities [6] - The frozen USDT is reportedly associated with various scams, indicating potential issues with the legitimacy of the funds [6][7]