Tether faces a New York lawsuit over 42.4 million USDT frozen after an HSI request.Plaintiffs allege no warrant or court order existed when Tether blacklisted their ten Ethereum addresses.A February seizure warrant directed Tether to burn USDT and reissue tokens into government custody.Prosecutors separately said over 61 million USDT was traced to wallets linked with investment fraud.Plaintiffs seek declaratory relief, an injunction, damages, reserve income disgorgement, and punitive damages from Tether.