Tether says it had ‘limited’ exposure to bank linked to $84M US seizure
Tether said it held a very small portion of its assets at EQIBank after US prosecutors identified the bank in a civil forfeiture complaint tied to a Montana payments firm, Capstone. The Justice Department reportedly froze roughly $84 million in Capstone accounts and alleged the firm moved funds for hundreds of parties at the direction of EQIBank.
Why It Matters
The matter links a major stablecoin issuer to a bank named in a U.S. enforcement action that froze millions in accounts, which could raise operational and counterparty-risk questions for market participants given Tether's large market presence. Any disruption involving payment processors or correspondent banks can have broader implications for how crypto firms manage banking relationships and liquidity.
Key Facts
- Entity involved: Tether Ltd.
- Bank named by DOJ: EQIBank
- Payments firm named in complaint: Capstone (Montana-based)
- Amount reportedly frozen: $84 million (approximately)
- Tether's exposure at EQIBank: 0.034% of the group's total assets
Tether said it maintained a nominal amount of assets at EQIBank after U.S. prosecutors connected the bank to a civil forfeiture case involving a Montana payments company called Capstone. In a statement to Cointelegraph, a Tether spokesperson said the company was a customer of EQIBank and had "no knowledge" of the alleged conduct described in the Justice Department's filing.
According to reporting the Financial Times cited in the complaint, prosecutors froze about $84 million in Capstone accounts. The Justice Department alleged Capstone operated without a license and processed payments for "hundreds of individuals and entities" at the direction of EQIBank, including movements on behalf of Tether and the cryptocurrency exchange Bitfinex.
Tether emphasized that the assets it held at EQIBank represented only 0.034% of the firm's total assets. The company did not answer a question about whether the seizure could affect its customers. As of the most recent trading Friday cited in the report, the USDT stablecoin had a market capitalization near $184 billion.
The reporting and Tether's response were published by Cointelegraph, which noted the company’s denial of knowledge regarding the alleged activity. The Department of Justice's civil forfeiture complaint is the source of the frozen-account figure and the allegations about Capstone's licensing and payment activity.
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