U.S. authorities seized $89 million from accounts linked to EQIBank, a Dominica-licensed lender that now faces liquidation. The Department of Justice filed a civil forfeiture case against Capstone, a U.S. payment processor that routed EQIBank's customer transactions through Wells Fargo and JPMorgan Chase accounts. Prosecutors alleged Capstone misrepresented its business operations to the banks, forming the basis for the action.
EQIBank confirmed the seizure represents approximately 80 percent of its total monetary holdings, a catastrophic loss that accelerates the lender toward closure. The bank had provided banking services to Tether, processing wire transfers for USDT purchases and redemptions.
Tether reported its assets held at EQIBank represent less than 0.034 percent of its total group assets. Based on Tether's June report showing $187.75 billion in total assets, this exposure calculates to roughly $64 million. A Tether spokesperson said the company "had no knowledge of the conduct by Capstone alleged by the Department of Justice."
The confirmed limited exposure poses no immediate threat to USDT's reserves or its dollar peg. Tether operates with substantial reserve backing, minimizing the impact of this specific counterparty event.
The action exposes persistent counterparty risk within fiat gateway networks essential for stablecoin operations. Stablecoin issuers depend on banking partners to convert fiat to crypto and vice versa—a critical function that directly affects stablecoin stability within the digital asset ecosystem. U.S. regulatory scrutiny on intermediaries facilitating fiat-to-crypto flows is intensifying, with compliance and transparency as focal points.
Stablecoin issuers must rigorously vet banking partners and payment processors. Diversifying banking relationships and ensuring all partners maintain strict compliance protocols are foundational to operational integrity and maintaining user trust as regulators tighten oversight of traditional financial connections.
