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Tether downplays exposure to bank in $84M seizure

Tether says tiny EQIBank assets as US seizes $84M over alleged Capstone transfers for Bitfinex

  • Tether confirmed limited exposure to EQIBank, representing just 0.034% of its total assets.
  • US prosecutors froze roughly $84 million in accounts linked to payments firm Capstone.
  • The DOJ alleged Capstone illegally transferred hundreds of millions of dollars at EQIBank‘s direction on behalf of Tether and Bitfinex.
  • Tether stated it had no knowledge of the alleged conduct reported in the civil forfeiture complaint.

Stablecoin issuer Tether confirmed it held assets at EQIBank, the financial institution at the center of a US Department of Justice civil forfeiture complaint that led to the seizure of roughly $84 million. The company stated its exposure through the bank represented just 0.034% of the group’s total assets.

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US prosecutors alleged that payments business Capstone illegally transferred hundreds of millions of dollars at the direction of EQIBank, where Tether holds some assets. The Justice Department reportedly froze about $84 million in Capstone‘s accounts as part of the complaint.

A Tether spokesperson told Cointelegraph that the company had “no knowledge” of any of the alleged conduct. Meanwhile, Justice Department officials alleged that Capstone was unlicensed and had made payments to “hundreds of individuals and entities” on behalf of Tether and Bitfinex, according to the Financial Times.

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