Key facts
- Tether's exposure to EQIBank, which allegedly directed payments firm Capstone Ltd., was less than 0.034% of its total assets.
- US prosecutors are seeking to seize $84.2 million from accounts tied to Capstone Ltd.
- Capstone Ltd. allegedly operated as an unlicensed money transmitter.
- Tether stated it had no knowledge of Capstone's alleged conduct.
- The funds were held at Wells Fargo Securities, JPMorgan Chase, and in two USDT wallets.
Tether has stated its exposure to EQIBank, a bank allegedly directing a payments firm in an unlicensed money transmission scheme, was limited to less than 0.034% of its total assets. US prosecutors are seeking to seize $84.2 million from accounts tied to Capstone Ltd., a Montana-based payments firm.
The Department of Justice filed a civil forfeiture complaint on July 15, alleging Capstone operated as an unlicensed money transmitter in at least six states and presented itself to banks as an IT services company. The complaint names Capstone's owners, Kotaro Shimogori and Mary Jeanne Thompson, while the FBI executed a search warrant at a Sacramento residence.
Of the $84.2 million at stake, $79.11 million was in a Wells Fargo Securities account, $2.06 million at JPMorgan Chase, $1.86 million in another Wells Fargo account, and just over $1.1 million was split across two USDT wallets. Tether confirmed EQIBank handled its USDT purchase and redemption transfers but stated it had "no knowledge" of Capstone's alleged conduct.