Tether Says Less Than 0.034% of Its Assets Sit at EQIBank, an Offshore Bank Hit by US Seizures
Tether said its EQIBank exposure is under 0.034% of group assets, while the bank says a U.S. seizure put about $89 million at risk.
- Stablecoin issuer Tether confirmed it holds assets at Dominica-licensed EQIBank, stating the exposure represents less than 0.034% of group assets as the bank contests a major U.S. seizure involving payment processor Capstone Ltd.
- U.S. prosecutors seized funds from Capstone accounts at Wells Fargo and JPMorgan Chase, alleging the payment processor misrepresented its business to the banks. EQIBank maintains it is an innocent owner of the money.
- EQIBank says U.S. authorities seized approximately $89 million, representing around 80% of its monetary holdings. Tether reported $187.75 billion in group assets, putting its potential exposure at roughly $64 million.
- District Judge Dale A. Drozd ordered the forfeiture action and EQIBank's claim assigned to the same court on September 16. A Tether spokesperson told The Information, "Tether had no knowledge of the conduct by Capstone alleged by the Department of Justice."
- A September 14 order requires government publication of the forfeiture action for 30 consecutive days, giving claimants up to 60 days to file claims. While the situation does not suggest an immediate threat to USDT's reserves, it highlights counterparty risks in banking networks.
26 Articles
26 Articles
Tether's Tiny Exposure to Seized Bank Accounts Sparks Big Questions on Offshore Reserves
A U.S. seizure of $89 million at Tether partner EQIBank, representing 80% of the bank's currency holdings, highlights ongoing risks in offshore banking relationships. Tether called its exposure under 0.034% of reserves. The incident revives scrutiny over how much cash the stablecoin giant still keeps beyond major custodians.
Tether says it had ‘limited’ exposure to bank linked to $84M US seizure
US prosecutors alleged that a payments business illegally transferred hundreds of millions of dollars at the direction of EQIBank, where Tether holds some assets. Stablecoin issuer Tether said that it had limited exposure through assets held at a bank that reportedly directed a payments company to allegedly move hundreds of millions of dollars on its […]
Bank accounts of a payment company based in Montana, which operated on behalf of Tether and Bitfinex, were seized by federal prosecutors on the charge of making hundreds of millions of dollars in illegal transfers. According to a civil confiscation action presented by the Department of Justice (DoJ) in California, Capstone operated without a license, concealed the nature of its US bank business and apparently made payments to "hundreds of indivi…
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