Tether sues Titan Holding in Brazil, seeking to recover a $300 million defaulted loan

According to Bitcoin.com on May 9, stablecoin issuer Tether has filed a lawsuit with the São Paulo court in Brazil, seeking repayment of a $300 million defaulted loan from Titan Holding, a company under the Master Group. The loan was issued in March 2025, with a scheduled repayment date of March 28, 2026, but Tether has not received any repayments to date.

Litigation Details and Legal Demands

According to Bitcoin.com and local media reports, in March 2025 Tether Investments issued a $300 million loan to Titan Holding, with a term of 12 months and a repayment date of March 28, 2026. As of the time the lawsuit was filed, Tether still had not received any repayments.

According to the court documents, Tether is requesting the São Paulo court to freeze the bank accounts, financial app investment, and other financial assets held by the defendants Titan Holding, Master Holding, and Master Participações. According to Bitcoin.com, Tether has joined the group of creditors seeking compensation from the Master Group.

Titan Holding Background: Master Group and Vorcaro Arrested

According to Bitcoin.com, Titan Holding is a company within the Master Group controlled by Daniel Vorcaro. Vorcaro was arrested on Thursday, May 8, 2026.

Vorcaro is also the owner of Banco Master. According to local media reports, the Central Bank of Brazil (Banco Central do Brasil) found a $2.2 billion reserve shortfall at Banco Master. Banco Master was liquidated in November 2025, affecting more than 1 million customers.

According to Bitcoin.com, when Tether issued this loan to Titan Holding, the Master Group scandal had not yet broken out.

Relationship Between Tether’s Loan Portfolio and USDT Reserve Holdings

According to Tether’s quarterly report, Tether’s secured loans account for 8.25% of its reserves, with a size of about $15.8 billion. The report states the above-mentioned loans are “overcollateralized and come with additional margin and liquidation mechanisms to maintain the collateral coverage ratio.”

In December 2025, Galaxy Research head Alex Thorn said that Tether is “the largest centralized finance (CeFi) lending institution in the crypto space, with a loan book size exceeding $14 billion,” and noted that Tether’s lending business is one of its diversification strategies for U.S. Treasury revenue.

FAQ

What are the repayment deadline and the default amount in Tether’s lawsuit against Titan Holding?

According to Bitcoin.com, in March 2025 Tether Investments issued a $300 million loan, with a repayment date of March 28, 2026. As of the time the lawsuit was filed, Tether had still not received any repayments. It has filed a recovery lawsuit with the São Paulo court in Brazil and requested the freezing of related assets.

Does this $300 million default affect USDT’s reserve backing?

According to a Tether statement, the $300 million loan is part of Tether’s lending portfolio and is not reserve funding that supports USDT issuance. According to Tether’s quarterly report, Tether’s secured loans account for 8.25% of its reserves, about $15.8 billion, and all come with overcollateralization and liquidation mechanisms.

What is the background to Vorcaro’s arrest and the liquidation of Banco Master?

According to Bitcoin.com and local media reports, Vorcaro was arrested on May 8, 2026. His owned Banco Master was liquidated in November 2025 after the Central Bank of Brazil found a $2.2 billion reserve shortfall, affecting more than 1 million customers.