PANews reported on May 9th that, according to Bitcoin.com, Tether has filed a lawsuit in a São Paulo court in Brazil, demanding that Titan Holding repay a $300 million defaulted loan. This loan, issued in March 2025 by Tether Investments, Tether's investment arm, had a 12-month term and was due for repayment on March 28, 2026, but has yet to be repaid. In the lawsuit, Tether is requesting the freezing of bank accounts, financial investments, and other assets of the defendants, including Titan and Master Holding. Tether clarified that the loan was not part of the reserves supporting the issuance of USDT, but rather part of its loan portfolio.

Titan Holding, a subsidiary of the Master Group, was arrested on Thursday. The group's owner, Daniel Vorcaro, was previously known as Banco Master, which was liquidated last November after the Brazilian central bank discovered a $2.2 billion reserve shortfall, affecting over one million customers.