Tether stated that its exposure is limited to assets held at EQIBank, following reports connecting the company and its affiliate Bitfinex to an alleged payments operation under investigation by the US Department of Justice.
DOJ action targets payments company
The Department of Justice filed a civil forfeiture complaint alleging that Capstone, a Montana-based payments firm, moved hundreds of millions of dollars as directed by EQIBank. Authorities said Capstone operated without proper licenses and facilitated transactions for a range of clients, including Tether and Bitfinex.
US prosecutors have frozen approximately $84 million in Capstone’s accounts in connection with the complaint. Justice Department officials claimed that Capstone made payments to hundreds of individuals and organizations on behalf of several clients.
A Tether spokesperson told Cointelegraph that the company had “no knowledge” of the alleged transactions involving Capstone. Tether clarified it is a customer of EQIBank, but emphasized that only a small fraction of the group’s assets—specifically 0.034%—were held at the bank in question.
Tether highlighted its relationship with EQIBank and stressed that funds held at the bank account for just 0.034% of its total assets, distancing itself from the activities cited in the Department of Justice’s complaint.
Tether addresses regulatory concerns
The investigation has raised regulatory attention on the operations of stablecoin issuers and their financial intermediaries. Tether’s USDT, one of the largest stablecoins by market capitalization, stood at around $184 billion as of Friday. The company has not commented on whether the asset freeze or the ongoing probe will impact its customers.
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The interaction between payment processors, banks, and large stablecoin issuers remains under scrutiny amid regulatory efforts to ensure transparency and compliance within the crypto ecosystem.
