Tether said its exposure to EQIBank, a Dominica-licensed bank whose assets were seized by U.S. authorities, is less than 0.034% of the group’s total assets. Based on the company’s June disclosure of $187.75 billion in total group assets, that implies a maximum exposure of roughly $64 million, though Tether did not disclose the exact figure. The company also said it had no prior knowledge of the conduct alleged by the U.S. Department of Justice against U.S. payment processor Capstone.
Court documents say EQIBank held and moved client funds through Capstone, with the money kept in accounts at Wells Fargo and JPMorgan Chase. U.S. prosecutors have seized funds in those accounts and filed a civil forfeiture action, alleging that Capstone misrepresented the nature of its business to banks. EQIBank said about $89 million was seized, equal to roughly 80% of its monetary assets, and that it could face liquidation as a result.
CoinDesk reported that EQIBank had previously provided banking services to Tether, including wire transfers tied to USDT purchases and redemptions. Tether’s disclosure does not indicate a direct threat to USDT reserves or its dollar peg, but it puts counterparty risk in focus for stablecoin issuers that rely on banks and payment processors for fiat access and redemptions.
Tether said its exposure to EQIBank, a Dominica-licensed bank whose assets were seized by U.S. authorities, is less than 0.034% of the group’s total assets.
Using Tether’s June disclosure of $187.75 billion in total group assets, its maximum exposure to EQIBank would be about $64 million. Tether did not disclose the exact amount. The company also said it was not previously aware of the conduct alleged by the U.S. Department of Justice against U.S. payment processor Capstone.
According to court documents, EQIBank held and transferred client funds through Capstone, and the funds were placed in accounts at Wells Fargo and JPMorgan Chase. U.S. prosecutors have seized money in those accounts and filed a civil forfeiture lawsuit, alleging that Capstone falsely described the nature of its business to banks.
EQIBank said about $89 million in assets was seized, equal to roughly 80% of its monetary assets, and that it may face liquidation as a result.
CoinDesk reported that EQIBank had previously provided banking services to Tether, including wire transfers related to USDT purchases and redemptions. Tether’s latest disclosure does not show a direct threat to USDT reserves or its dollar peg, but it does highlight counterparty risk tied to the banking and payment-processing channels used by stablecoin issuers for fiat deposits, withdrawals and redemptions.
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