Tether limits EQIBank exposure to 0.034% amid U.S. forfeiture case

While Tether did not specify a dollar amount, its claim that exposure represents less than 0.034% of its group assets implies a ceiling of approximately $63.8 million, based on the $187.75 billion in assets reported in June. Tether emphasized that it had no prior knowledge of the activities of Capstone Ltd., the payment firm whose accounts were targeted by U.S. prosecutors.

The legal dispute centers on a civil forfeiture complaint in the Eastern District of California. EQIBank contends that the $89 million seized by authorities accounts for nearly 80% of its monetary holdings, warning that the loss could trigger liquidation. However, the government’s filing lists approximately $84.2 million in seized funds held across accounts at Wells Fargo and JPMorgan Chase. District Judge Dale A. Drozd has denied the bank’s initial motion for the return of property, noting that the ongoing civil forfeiture proceedings must take precedence.

Despite the bank’s assertion that it is an innocent party in the investigation, the litigation remains active. The court has ordered the consolidation of related cases, and a notice period is currently underway for any entities seeking to claim an interest in the seized assets. Tether’s latest financial audit, conducted by KPMG for the 2025 fiscal year, confirmed a reserve buffer of $6.814 billion, though those findings do not account for the current status of funds held at the embattled banking partner.