Tether said its exposure to EQIBank represents less than 0.034% of the stablecoin issuer’s total group assets after U.S. authorities seized funds connected to the lender, a development that could push EQIBank toward liquidation.
Tether said it had no knowledge of the conduct alleged by the U.S. Department of Justice against Capstone, a U.S. payment processor used by EQIBank to hold and move customer funds through accounts at Wells Fargo and JPMorgan Chase. Prosecutors seized money from those accounts and filed a civil forfeiture case, alleging that Capstone misrepresented its business to banks.
EQIBank said approximately $89 million was seized, representing about 80% of its monetary holdings. The lender said the seizure could force it into liquidation, according to reports cited in the source material.
Tether confirmed that EQIBank provided banking services for the company, including processing wire transfers related to USDT purchases and redemptions. Based on Tether’s reported $187.75 billion in group assets for June, its stated exposure of less than 0.034% would imply an amount of roughly $64 million, although Tether did not disclose the exact figure.
The disclosure does not indicate an immediate impact on USDT’s reserves or dollar peg based on the information provided. However, it highlights the counterparty exposure that can exist within the banking infrastructure used by stablecoin issuers to process deposits, transfers, and redemptions.
