A team led by American lawyer Charles Gerstein recently submitted an application to the Manhattan federal court, requesting the judge to order Tether to handle and transfer approximately 344,149,759 USDT that have been locked on the blockchain—equivalent to about 344 million dollars— for the payment of a batch of terrorism case victims' judgments against Iran that have not been executed. The targeted tokens were originally sitting in two Tron wallet addresses until the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) identified these addresses as related to the Iranian Islamic Revolutionary Guard Corps, after which Tether implemented a freeze on them in response to the sanction list, pinning the tokens on-chain and preventing further movement. Now, the plaintiffs seek to further transform this "freeze" into a "transfer": According to CoinDesk, they claim that since Tether can freeze the original tokens, it should reissue an equivalent amount of USDT to a wallet controlled by the plaintiff's lawyers within the technical and compliance framework in order to achieve the actual execution of the Iranian judgment. This request directly pushes the three parties—U.S. sanctions compliance, judicial seizure of digital assets, and the compensation needs of terrorism victims—onto the same rope; it also represents the lawyer team's attempt to extend the pursuit from controlling on-chain assets to the redistribution layer of the issuer's assets after their previous case concerning the seizure of Arbitrum crypto assets. So far, there is no public information indicating that the court has made a final ruling, and Tether has also not issued a formal response; the tug-of-war over "who can use frozen assets and for whom" remains in the exploratory stage of legal tactics and platform boundaries.

From Arbitrum Seizure to Targeting Tether

The same group of lawyers has completed the first round

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