Tether Claims ‘Limited’ Exposure to Bank Linked to $84M US Asset Seizure
Stablecoin issuer Tether responded to reports about a Montana-based payments firm facing a U.S. Department of Justice civil forfeiture action that led to the freezing of $84 million. Tether denied knowledge of any alleged misconduct, clarifying that its assets held at the implicated bank constitute only 0.034% of its total holdings.
Background on Asset Freeze and Allegations
The U.S. Department of Justice filed a civil forfeiture complaint targeting Montana-based payments firm Capstone, resulting in the freezing of approximately $84 million in its accounts. Officials alleged that Capstone operated without a license and conducted payments to hundreds of individuals and entities purportedly on behalf of Tether and Bitfinex.
Tether and Bitfinex are connected to Capstone through EQIBank, which prosecutors claim directed Capstone in handling these financial transactions.
Tether's Statement and Exposure
A spokesperson for Tether told Cointelegraph that the company has no knowledge of the alleged wrongdoing. Tether confirmed being a customer of EQIBank but stated that its assets held there represent only 0.034% of the group’s total assets.
When asked about the potential impact of the asset seizure on its customers, Tether declined to comment. As of the latest data on Friday, Tether’s stablecoin USDT had a market capitalization of roughly $184 billion.
Why it matters
The incident underscores how major cryptocurrency market players can be tangentially linked to financial entities under regulatory scrutiny. Tether’s limited exposure to the frozen bank highlights a risk segmentation strategy but also emphasizes the critical need for transparency and oversight in partner relationships to maintain stability and confidence in stablecoins.
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