Tether and Bitfinex linked to $84.2 million US asset freeze in Capstone case

Tether, the issuer of the widely used USDT stablecoin, and its affiliated exchange Bitfinex have been identified as the previously unnamed cryptocurrency firms involved in a major US forfeiture case targeting Capstone Ltd, according to sources cited by the Financial Times.

Federal investigation and asset seizures

Federal prosecutors in California froze roughly $84.2 million associated with Capstone Ltd, alleging the payments company facilitated financial transactions without a proper license. Legal filings reveal that Capstone’s account with Wells Fargo reportedly disbursed $337 million between March and December 2025, excluding Treasury purchases.

Prosecutors claim that nearly two-thirds of these funds were directed to hundreds of recipients, largely outside the United States, on behalf of the two crypto firms now identified as Tether and Bitfinex. The complaint does not name these firms directly, instead referring to a crypto company, an affiliated exchange, and a bank based in Dominica.

Authorities seized funds from multiple banking channels, including $79.11 million held in a Wells Fargo Securities account, $2.06 million at JPMorgan Chase, $1.86 million at Wells Fargo Bank, and approximately 1.18 million USDT split between two wallets.

Allegations, denials, and Capstone’s defense

Investigators allege that Capstone presented itself as an IT services firm to financial institutions. The company is based in Montana, which is the only US state that does not require a money transmitter license. The complaint also links Capstone to a separate scam involving fraudsters posing as FBI agents who pressured elderly victims into sending payments that were then converted to USDT.

According to court records, one account tied to this fraudulent activity held just over $2 million. Authorities have found no evidence suggesting that Tether, Bitfinex, or EQIBank were aware of the alleged wrongdoing.

Capstone has denied any illicit conduct. Its attorney stated that the company intends to file a motion to dismiss the case.

Investigators asserted that Capstone moved $337 million between March and December 2025, with two-thirds of those funds sent on behalf of two crypto firms, mostly to recipients outside the United States.

EQIBank and banking repercussions

EQIBank, a digital bank licensed in Dominica, served as an intermediary for Tether and Bitfinex in their dealings with Capstone. Both firms confirmed their client status with EQIBank but maintained that they had no knowledge of the activities attributed to Capstone. Tether reported its exposure at less than 0.034% of its total group assets.

EQIBank disclosed that, on April 2, approximately 80% of its monetary assets held through Capstone were frozen. Bank officials spent three hours in discussions with US Department of Justice lawyers on April 16 but did not have legal representation in the US present during the call.

Following the asset freezes, Dominica’s financial regulator placed EQIBank under heightened supervision and warned that further measures, including liquidation, could follow. On July 16, US District Judge Dale A. Drozd rejected the bank’s attempt to recover the frozen funds.

Tether also faced a separate incident in which two Thai businessmen filed a lawsuit, alleging that Tether froze $42.4 million in USDT after a verbal request from a US Homeland Security agent earlier in the year.

Mini dictionary: EQIBank is a licensed digital bank operating from Dominica that focuses on offering online banking and digital asset custody services, catering to fintech and cryptocurrency-related companies worldwide.