TLDR
- Tether confirmed it holds assets at EQIBank but says the amount is less than 0.034% of group assets.
- U.S. prosecutors are seeking forfeiture of about $84.2 million seized from accounts and crypto linked to Capstone Ltd.
- EQIBank says about $89 million was seized, roughly 80% of its monetary holdings, and warns it could face liquidation.
- A federal judge denied EQIBank’s motion to return the property after prosecutors filed a civil forfeiture complaint.
- Claimants have up to 60 days after the first day of public notice to file claims in the case.
Tether has confirmed that it holds assets at EQIBank, an offshore bank now fighting a U.S. government seizure. The stablecoin issuer said its exposure to the bank is less than 0.034% of the group’s total assets.
The Information first reported that EQIBank, which is licensed in Dominica, provided banking services to Tether. These services included processing wire transfers linked to purchases and redemptions of USDT.
“Tether had no knowledge of the conduct by Capstone alleged by the Department of Justice,” a Tether spokesperson told The Information. Capstone Ltd. is the payment provider at the center of the case.
What Tether’s 0.034% Figure Means
Tether did not share the exact dollar amount it holds at EQIBank. Its latest quarterly report listed $187.75 billion in assets as of June 30. Applying the 0.034% limit to that total gives a maximum of about $63.8 million, though the real figure could be lower.
The same June report showed liabilities of about $183.64 billion and excess reserves of $4.11 billion. That buffer had dropped from $8.23 billion at the end of the first quarter.
USDT issuance stood near $184.6 billion at the end of June. Tether said its reserves remain mostly in short-term, liquid assets.
In August, Tether completed its first full independent audit, covering 2025. KPMG found reserves exceeded token liabilities by $6.814 billion at year-end.
Inside the $84.2 Million Forfeiture Case
A September 14 court order lists about $79.11 million seized from a Wells Fargo Securities account in Capstone’s name. It also lists $1.86 million from a Wells Fargo Bank account and about $2.06 million from a JPMorgan Chase account.
Prosecutors also named about 1.12 million USDT from one crypto address and 54,578.45 USDT from another. Together, the property totals roughly $84.2 million.
EQIBank gives a different number. The bank says U.S. authorities seized about $89 million belonging to it, around 80% of its monetary holdings. It has warned in court filings that losing the funds could put it at risk of liquidation.
EQIBank says it is an innocent owner of the money. “EQIBank is not a rogue bank,” the bank said in court papers quoted by The Information. It added that the government has not named it as a target of the investigation.
The bank first sought the return of its property on June 29 in the U.S. District Court for the Eastern District of California. The government then filed a separate civil forfeiture complaint on July 15.
At a July 16 hearing, District Judge Dale A. Drozd denied EQIBank’s motion for lack of equitable jurisdiction. The court has not ruled on who owns the seized funds.
On September 16, Judge Drozd assigned both cases to the same judges because they are related. The court said this move did not combine the two cases.
The September 14 order also requires the government to post notice of the forfeiture for 30 straight days on a federal website. Anyone claiming the property has up to 60 days after the first day of publication to file a claim. Claimants then have 21 days to answer the complaint or seek relief under Rule 12.
