Tether says it had ‘limited’ exposure to bank linked to $84M US seizure
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Tether stated it had limited exposure through assets held at EQIBank, a bank linked to Capstone, a payment company involved in an $84 million US government seizure. Tether confirmed it was a customer of EQIBank but held only 0.034% of its total assets there. The Department of Justice filed a civil forfeiture complaint alleging Capstone made payments on behalf of Tether and Bitfinex. Tether denied any knowledge of the alleged conduct.
Why it matters
The development relates to US prosecutors freezing $84 million in accounts connected to Capstone, raising questions about possible regulatory risks for Tether and Bitfinex. The source does not specify how this seizure might affect Tether’s customers or the broader market.
Key context
Capstone, the payment company involved, was allegedly unlicensed and directed by EQIBank to send and receive funds for hundreds of individuals and entities, including Tether and Bitfinex. The Department of Justice’s involvement highlights regulatory scrutiny of crypto payment mechanisms. Tether’s stablecoin, USDT, had a market capitalization of approximately $184 billion at the time.
Key numbers and entities
The US government froze $84 million linked to Capstone’s accounts. Tether held 0.034% of its total assets at EQIBank. The entities involved include Tether, Bitfinex, EQIBank, Capstone, and the US Department of Justice. USDT’s market cap was about $184 billion.
What remains unclear
The report does not clarify how the frozen funds or allegations against Capstone might impact Tether’s operations or its customers. It also does not detail the precise nature of the relationship or transactions between Tether, Bitfinex, and Capstone.