Tether said assets it held at Dominica-licensed digital bank EQIBank accounted for less than 0.034% of the group’s total assets, according to a CoinDesk report. Based on Tether’s June disclosure of $187.75 billion in total group assets, the company’s exposure would be capped at roughly $64 million, though it did not disclose the exact amount. The report said EQIBank used U.S. payments processor Capstone to handle client funds, with transfers moving through accounts at Wells Fargo and JPMorgan Chase. U.S. prosecutors have seized funds tied to those Capstone accounts and filed a civil forfeiture case, alleging the processor misrepresented its business to banks. EQIBank said about $89 million had been seized, equal to around 80% of its monetary assets, a situation that could leave the bank facing liquidation risk. EQIBank previously provided banking services to Tether, including wire transfers tied to USDT purchases and redemptions. Tether said it was not aware of the Capstone-related conduct described by the U.S. Department of Justice.
Tether said assets it held at EQIBank, a licensed digital bank in Dominica, accounted for less than 0.034% of the group’s total assets, according to CoinDesk.
Using Tether’s June disclosure of $187.75 billion in total group assets, that puts the company’s maximum exposure at about $64 million. Tether did not disclose a precise figure.
U.S. prosecutors seized funds tied to Capstone accounts
The report said EQIBank processed client funds through U.S. payment processor Capstone, which moved money through accounts at Wells Fargo and JPMorgan Chase. U.S. prosecutors have seized funds tied to Capstone-linked accounts and filed a civil forfeiture lawsuit, alleging that Capstone made false statements to banks about its business.
EQIBank says seized funds equal about 80% of monetary assets
EQIBank said about $89 million was seized, representing roughly 80% of its monetary assets. The bank said that could expose it to liquidation risk.
EQIBank had previously provided banking services to Tether, including wire transfers related to USDT purchases and redemptions. Tether said it was not aware of the Capstone-related conduct alleged by the U.S. Department of Justice.
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