Tether confirms limited EQIBank exposure after $84M US seizure
In brief
- US prosecutors froze $84M in Capstone accounts via civil forfeiture complaint
- Tether confirmed customer status at EQIBank, which DOJ alleged directed payments firm
- Tether's EQIBank assets represent 0.034% of total reserves
Seizure and Allegations
US prosecutors froze about $84 million in Capstone's accounts as part of a civil forfeiture complaint. The Justice Department alleged that Capstone was unlicensed and had made payments to hundreds of individuals and entities on behalf of Tether and Bitfinex.
Tether confirmed it was a customer of EQIBank, the bank the Justice Department alleged directed the payments company. The stablecoin issuer said it had no knowledge of any of the alleged conduct. A company spokesperson told Cointelegraph that the exposure was minimal.
Limited Exposure
The amount held at the bank represented 0.034% of the group's total assets. That fraction underscores why Tether characterized its relationship with EQIBank as limited. As of Friday, the USDT stablecoin had a market capitalization of about $184 billion.
The disclosure comes as regulators intensify scrutiny of stablecoin issuers and their banking relationships. Tether's statement separates the company from the alleged misconduct while acknowledging the connection to EQIBank.
