Overview
- Tether confirmed on Sept. 25 that a small amount of its reserves are frozen at Dominica‑licensed EQIBank and said the exposure is below 0.034% of group assets, an upper bound of roughly $64 million based on its June report.
- U.S. prosecutors filed a civil forfeiture complaint in July seeking about $84.2 million tied to Capstone Ltd., with court filings listing roughly $79.11 million from a Wells Fargo Securities account plus smaller sums at JPMorgan and two USDT wallets.
- EQIBank says roughly $89 million was seized, which it describes as about 80% of its monetary holdings, and the bank warned in court papers that the loss could force it into liquidation.
- Markets have shown little immediate stress for USDT, which has held near $1, and Tether says most of its reserves are held in short‑duration U.S. Treasury instruments and repurchase agreements.
- A federal judge has ordered publication of the forfeiture notice and set claim deadlines under Supplemental Rule G, and the case outcome will decide recoverability and likely shape how stablecoin issuers choose banking partners.