Tether confirms minimal EQIBank exposure following $89M US asset seizure

Tether said assets it keeps at EQIBank, a Dominica-licensed digital lender, represent under 0.034% of its consolidated holdings after U.S. authorities seized funds tied to the bank's payment processor. The disclosure followed reports that the seizure could push EQIBank toward liquidation. Using Tether's June figure of $187.75 billion in group assets, the company’s stated percentage converts to an implied exposure near $64 million, though Tether did not provide an explicit dollar amount. The firm also told CoinDesk it was unaware of alleged misconduct by the U.S. payment processor, Capstone, that was cited by prosecutors. According to court filings, Capstone maintained accounts at Wells Fargo and JPMorgan Chase that EQIBank used to move customer funds; U.S. prosecutors seized money from those accounts and filed a civil forfeiture action. Reports cited by the Financial Times and The Information said about $89 million was seized — roughly 80% of EQIBank’s reported monetary holdings — raising questions about the lender’s ability to continue operations. Tether confirmed EQIBank had provided banking services tied to wire transfers for USDT purchases and redemptions but said the incident did not present an immediate threat to its reserves or to USDT’s dollar peg. Still, the episode highlights how stablecoin issuers rely on a chain of banking and payment counterparties to process fiat inflows and outflows, creating potential points of vulnerability even when direct exposures are small.