Tether funds trapped as EQIBank fights U.S. seizure

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Tether funds trapped as EQIBank fights U.S. seizure
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FinanceFeeds

EQIBank is contesting a U.S. seizure and forfeiture complaint tied to roughly $84–89 million in accounts linked to payment processor Capstone, a sum the bank says represents about 80% of its monetary holdings. The lender warned the loss could force liquidation and has filed for return of property while U.S. prosecutors seek forfeiture in federal court in California. Tether disclosed funds at EQIBank equal to less than 0.034% of its assets (an upper bound of roughly $63.8 million based on its June balance sheet), making direct exposure limited but highlighting banking counterparty risk for stablecoin reserves.

Tether's exposure to EQIBank is under 0.034% of assets.

Context

U.S. authorities seized cash tied to Capstone, and prosecutors filed a forfeiture complaint. EQIBank says the seizure is about 80% of its cash and could force liquidation. Tether has some funds at the bank but reports the share is under…

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