US prosecutors seek $84.2 million from accounts tied to Tether banking partner EQIBank

Sources · 8 sources

1. TI

   The Information@theinformationPost on X · Sep 24

   Tether banking partner EQIBank is fighting to recover about $90 million seized from accounts held by a U.S. payment provider it used to access the American banking system. Read more: https://t.co/aJlxWF2huB

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2. CB

   Crypto BriefingArticle · Sep 24

   EQIBank fights to recover $89M seized from US payment provider accounts EQIBank's legal struggle highlights the vulnerability of offshore banks to US jurisdiction, potentially reshaping digital banking's global landscape. The post EQIBank fights to recover $89M seized from US payment provider accounts appeared first on Crypto Briefing .

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3. DE

   DecryptArticle · Sep 25

   US Prosecutors Want $84.2 Million From a Bank Tied to Tether Federal prosecutors are targeting a Montana payments firm and a Caribbean bank accused of moving money without a license.

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4. UN

   UnchainedArticle · Sep 25

   Tether Says Less Than 0.034% of Its Assets Sit at EQIBank, an Offshore Bank Hit by US Seizures EQIBank , a Dominica-licensed bank that says US seizures took roughly 80% of its financial assets, holds some of Tether ‘s money, the stablecoin issuer said. A Tether spokesperson put the company’s holdings at EQIBank at “less than 0.034% of the assets of the group” in an emailed statement , without naming a dollar figure. The Information first reported the exposure on Sept. 24. Measured against the $187.75 billion in total assets in Tether’s second-quarter reserves report , that would be less than about $63.8 million . The Capstone Accounts EQIBank says it kept funds with Capstone Ltd. , a US payments company that held the money in its own name at Wells Fargo, JPMorgan Chase and other banks. According to the bank’s motion to recover the money , it began learning around April 2 that the funds had been frozen, and formal seizure warrants followed around June 1. In June, its lawyers wrote that the government’s allegations, at least initially, appeared to focus on representations Capstone may have made to Wells Fargo and other banks. “Tether had no knowledge of the conduct by Capstone alleged by the Department of Justice,” the spokesperson said in the same statement. EQIBank co-founder Christopher Burke said in a sworn declaration filed in June that the seized money made up “roughly 80%” of the bank’s financial assets and that the bank “cannot operate much longer” without some of it. Burke said Dominica’s Financial Services Unit placed EQIBank under enhanced supervision on June 5, a move he called a “preliminary step for the regulator to prepare to take over and liquidate the Bank” if it cannot serve its depositors. Judge Dale A. Drozd of the Eastern District of California turned down EQIBank’s request on July 16. The ruling was procedural: once prosecutors had filed a civil forfeiture case over the Capstone accounts the day before, the court said it lacked equitable jurisdiction. What Prosecutors Want to Keep The forfeiture case covers about $83 million held in Capstone’s name at Wells Fargo and JPMorgan Chase, plus about 1.18 million USDT from two Tron addresses, according to a Sept. 14 court order . Together that comes to about $84.2 million . Tether’s excess reserves stood at $4.11 billion at the end of June, about half the $8.23 billion it held three months earlier, a drop Unchained covered in August. Related Listen: Why the Crypto Market Cap Could Reach $50 Trillion This Cycle The post Tether Says Less Than 0.034% of Its Assets Sit at EQIBank, an Offshore Bank Hit by US Seizures appeared first on Unchained .

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5. LS

   Laura Shin@laurashinPost on X · Sep 25

   EQIBank, which says US seizures took roughly 80% of its financial assets, holds some of Tether's money. A Tether spokesperson said the company's assets at the bank are less than 0.034% of the group's total. https://t.co/wCukyo8yLU

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6. CB

   Crypto BriefingArticle · Sep 25

   US seizes Capstone’s bank accounts over alleged illegal transfers for Tether and Bitfinex The seizure highlights vulnerabilities in crypto banking partnerships, potentially deterring small banks from engaging with crypto firms. The post US seizes Capstone’s bank accounts over alleged illegal transfers for Tether and Bitfinex appeared first on Crypto Briefing .

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7. CO

   CoindeskArticle · Sep 25

   Tether confirms minimal EQIBank exposure following $89M US asset seizure While Tether's stated ceiling places its maximum exposure under $64 million, the incident underscores lingering counterparty risks in fiat gateway networks.

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8. CB

   Coin Bureau@coinbureauPost on X · Sep 25

   🚨BREAKING: US seizes bank accounts tied to a Tether-linked payments firm, FT reports. The firm, Capstone, is accused by the DOJ of illegally moving hundreds of millions of dollars for Tether and Bitfinex through EQIBank, a small Caribbean bank. Capstone allegedly opened US bank accounts while presenting itself as a tech company, then used those accounts to send payments to hundreds of individuals and entities. About $84 MILLION has now been frozen from Capstone accounts at Wells Fargo and JPMorgan. FT reports Capstone was also linked to a separate case where stolen cash from elderly victims was allegedly converted into USDT. Tether and Bitfinex said they were EQIBank customers, but had no knowledge of Capstone’s alleged misconduct. This highlights Tether’s banking access problem, relying on smaller offshore banks and payment middlemen to reach the dollar system.

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9. FT

   Financial Times@FTPost on X · Sep 25

   Bank accounts of a Montana-based payments business working on behalf of Tether and Bitfinex have been seized by federal prosecutors who accuse it of making hundreds of millions of dollars of illegal transfers. https://t.co/9npH4sAhtV https://t.co/s05Z9tMnN9

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