Crypto · updated 1h ago · 2 min read
Tether Says EQIBank Exposure Is Below 0.034% After U.S. Seizes $89 Million
Tether reports exposure to EQIBank at under 0.034% of total assets. U.S. seizure totals about $89 million tied to EQIBank, affecting Capstone-linked funds.
11 outlets told this the same way.
7 of 8 outlets skipped it: tether completed its first full independent KPMG audit in Aug 2026.
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Tether cites 0.034% cap
Tether said its exposure to EQIBank amounts to less than 0.034% of its total assets after U.S. authorities seized assets tied to the Dominica-licensed lender. Tether spokesperson told CoinDesk via email, “Tether had no knowledge of the conduct by Capstone alleged by the Department of Justice,” as the seizure centered on Capstone accounts used to hold and move funds. Tether said assets held at EQIBank were limited to “less than 0.034% of the assets of the group,” while the company did not disclose the exact dollar amount.
CoinDesk reported that Tether’s June report put group assets at $187.75 billion, which would imply EQIBank exposure of roughly $64 million based on the 0.034% ceiling. EQIBank said U.S. authorities seized roughly $89 million, which it described as about 80% of its monetary holdings, putting the lender at risk of liquidation.
Seizure tied to Capstone
Court filings described EQIBank using Capstone, a U.S. payment processor, to hold funds and move customer money through accounts at Wells Fargo and JPMorgan Chase. U.S. prosecutors seized money from those Capstone accounts and filed a civil forfeiture case alleging that Capstone misrepresented its business to banks. The seizure reportedly affected about $89 million, or 80% of EQIBank’s monetary holdings, according to Financial Times and The Information as cited by CoinDesk.
A federal judge denied EQIBank’s property-return motion after prosecutors filed a separate civil forfeiture complaint, and the litigation remained active. The Information reported that EQIBank provided banking services to Tether, including processing wire transfers linked to purchases and redemptions of USDT.
What the dispute means
Tether said the disclosure does not suggest an immediate threat to USDT’s reserves or dollar peg, even as it highlighted counterparty risk in the network of banks that help stablecoin issuers process deposits and redemptions. The Defiant reported that a federal court order listed $79.1 million seized, while the broader dispute still involved EQIBank’s claim that about $89 million was seized. ForkLog said a September 14 court order required notice of the forfeiture case to be published on forfeiture.gov for 30 days, and interested parties could claim the assets within the court-specified timeframe.
ForkLog also said a federal judge denied EQIBank’s motion for the return of the property on July 16, after the government filed a separate forfeiture lawsuit. Tether confirmed it holds assets at EQIBank but did not disclose the exact amount, leaving the practical question tied to how the ongoing forfeiture and liquidation risk play out for the banking channel behind USDT flows.