U.S. Seizes $89M in Capstone Assets Linked to EQIBank; Tether Exposure Below 0.034%

According to CoinDesk, Tether, the stablecoin issuer, stated that its assets held at EQIBank, a licensed digital bank in Dominica, account for less than 0.034% of the group’s total assets. Based on Tether’s disclosed total group assets of $187.75 billion as of June, its related exposure is estimated to be no more than approximately $64 million, though Tether has not disclosed the exact amount. The report indicates that EQIBank processes customer funds through the U.S. payment processor Capstone, which uses accounts at Wells Fargo and JPMorgan Chase to transfer funds. U.S. prosecutors have seized funds in Capstone-related accounts and filed a civil forfeiture lawsuit, alleging that Capstone made false representations to banks about its business. EQIBank stated that approximately $89 million in funds have been seized, representing about 80% of its monetary assets, potentially exposing it to liquidation risk. Previously, EQIBank provided banking services to Tether, including processing wire transfers related to USDT purchases and redemptions. Tether stated that it was unaware of the alleged activities by Capstone that are the subject of the U.S. Department of Justice’s investigation.