Tether confirms minimal EQIBank exposure following $89M US asset seizure

Stablecoin issuer Tether said it has very little exposure to a lender seized by U.S. authorities on Thursday.

Tether said assets it holds at EQIBank represent less than 0.034% of its total assets, after the Dominica-licensed lender was caught up in a U.S. asset seizure that it said could force it into liquidation, according to reports by the Financial Times and The Information.

“Tether had no knowledge of the conduct by Capstone alleged by the Department of Justice,” a Tether spokesperson told CoinDesk via email. The company said assets held at EQIBank were limited to “less than 0.034% of the assets of the group,” but did not disclose the exact dollar amount.

Based on Tether’s June report of $187.75 billion in group assets, the percentage the spokesperson said was at risk would put the EQIBank exposure at roughly $64 million.

EQIBank used Capstone, a U.S. payment processor, to hold funds and move customer money through accounts at Wells Fargo and JPMorgan Chase, according to court filings. U.S. prosecutors seized money from those Capstone accounts and filed a civil forfeiture case, alleging that Capstone misrepresented its business to banks.