Tether had minimal exposure to EQIBank after $84M seizure
Tether held 0.034% of its assets at EQIBank and called its exposure limited after U.S. prosecutors froze about $84 million in Capstone accounts tied to the bank.
Tether confirmed it held funds at EQIBank and that those balances represented 0.034% of the group’s total assets after U.S. prosecutors froze roughly $84 million in accounts linked to Capstone, a Montana-based payments company.
The Department of Justice filed a civil forfeiture complaint naming Capstone and alleging the company operated without a license and moved funds at EQIBank’s direction.
Prosecutors froze about $84 million in Capstone accounts identified during the inquiry and allege Capstone made payments to ‘hundreds of individuals and entities’ on behalf of Tether and the cryptocurrency platform Bitfinex.
A company spokesperson declined to say whether the seizure could affect Tether’s customers and added the firm had ‘no knowledge’ of the alleged conduct described in the complaint.
Tether issues the USDT stablecoin, which had a market capitalization of about $184 billion as of Friday. The company did not provide further detail on the size or purpose of the accounts at EQIBank beyond the percentage of total assets.
The civil forfeiture complaint seeks to seize assets the DOJ says are connected to unlawful activity. Prosecutors allege an unlicensed payments operation facilitated transfers tied to EQIBank and, indirectly, to major cryptocurrency platforms.
In its statement, Tether described the holdings at EQIBank as a small fraction of its assets and narrowed its reported exposure to the bank.
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