Key facts
- Tether stated it had limited exposure to EQIBank, a bank allegedly directing a payments firm.
- US prosecutors froze about $84 million in the payments company's accounts.
- Tether confirmed it held 0.034% of its total assets at EQIBank.
Tether stated it had minimal exposure to EQIBank, a bank allegedly directing a payments firm to move hundreds of millions of dollars illegally. US prosecutors froze about $84 million in the payments company's accounts as part of the complaint.
The seizure of funds linked to a bank where Tether holds assets raises concerns about the stability and regulatory compliance of stablecoin issuers, potentially impacting customer confidence and the broader crypto market.
Stablecoin issuer Tether has stated it had limited exposure to EQIBank, a bank that US prosecutors allege directed a payments company to illegally transfer hundreds of millions of dollars. The US Department of Justice reportedly froze about $84 million in the payments company's accounts as part of a civil forfeiture complaint.
Tether confirmed it was a customer of EQIBank but stated that the assets held there represented only 0.034% of the group's total assets. A spokesperson for Tether told Cointelegraph that the company had "no knowledge" of any of the alleged conduct by the payments business, Capstone. Justice Department officials alleged that Capstone, an unlicensed business, made payments to "hundreds of individuals and entities" on behalf of Tether and Bitfinex, according to the Financial Times.
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