EQIBank Says U.S. Seized $89M as Tether Limits Exposure
The bank says the funds represent about 80% of its monetary assets and could put it at risk of liquidation. Tether says its EQIBank exposure is below 0.034% of total assets.
EQIBank says U.S. authorities seized about $89 million linked to its payment processor, an action the Dominica-licensed digital bank says removed roughly 80% of its monetary assets and may threaten its survival.
The funds were processed through Capstone, which used accounts at Wells Fargo and JPMorgan Chase to move customer money. Federal prosecutors have filed a civil forfeiture case and allege that Capstone falsely represented its business to the banks.
EQIBank says the seizure could leave it facing liquidation. The bank previously provided services to Tether, including wire transfers connected with purchases and redemptions of USDT.
Tether said assets held at EQIBank account for less than 0.034% of its total assets. Based on Tether’s reported June assets of $187.75 billion, that percentage implies an upper limit of about $64 million, although Tether has not disclosed the actual amount.
Tether also said it was unaware of the conduct that U.S. prosecutors allege against Capstone.
