Tether-linked EQIBank faces $84.2 million U.S. forfeiture case
U.S. prosecutors seek $84.2 million tied to Capstone, while Tether says its EQIBank exposure is under 0.034% of group assets.
By Theo Nakamura · Staff Writer
· 3 min read
U.S. prosecutors are seeking to keep about $84.2 million in a civil case involving Capstone Ltd., a payments company connected to EQIBank, which processed wire transfers for Tether’s USDT purchases and redemptions. The Tether EQIBank forfeiture case does not accuse Tether of wrongdoing, but it puts one of the stablecoin issuer’s banking relationships under scrutiny.
According to Decrypt, the Justice Department filed its civil-forfeiture complaint on July 15, 2026, in the Eastern District of California. The complaint targets assets associated with Capstone, a Montana-based payment processor.
Prosecutors allege Capstone operated as an unlicensed money transmitter in at least six states and described itself to banks as an IT-services company rather than a business moving money for others, Decrypt reported. Those are allegations in a property-based case, not a criminal conviction.
What is the Tether EQIBank forfeiture case?
Civil forfeiture allows the government to pursue assets it says are tied to unlawful activity without first obtaining a criminal conviction against the property’s owner. Yahoo Finance’s version of the Decrypt report said Capstone and EQIBank have asserted innocent-owner defenses over the funds, while an attorney for Capstone said the company denies wrongdoing.
The complaint seeks roughly $84.2 million across bank accounts and crypto wallets, according to Decrypt:
- $79.11 million from a Wells Fargo Securities account in Capstone’s name
- $2.06 million held at JPMorgan Chase
- $1.86 million in a separate Wells Fargo account
- Just over $1.1 million across two USDT wallets
Decrypt reported that prosecutors say EQIBank, a Dominica-licensed digital bank, directed Capstone’s payment activity. Tether confirmed that EQIBank handled wire transfers related to USDT purchases and redemptions, but said it had no knowledge of the conduct the Justice Department alleges against Capstone.
Why do the reported $84.2 million and $89 million figures differ?
The $84.2 million figure is the amount sought in the government’s forfeiture complaint. EQIBank separately said that about $89 million taken by U.S. authorities represented roughly 80% of its monetary holdings, according to crypto.news. The figures describe different reported measures and should not be treated as the same amount.
EQIBank has warned that losing the funds could push it into liquidation, Decrypt reported. A federal judge denied the bank’s request to have property returned after prosecutors filed the separate forfeiture complaint, according to crypto.news.
For Tether users and investors, the immediate point is the distinction between the case against Capstone-linked assets and Tether’s stated exposure. Tether said assets held at EQIBank accounted for less than 0.034% of group assets, without disclosing a dollar balance. Crypto.news noted that applying that ceiling to Tether’s reported June 30 assets of $187.75 billion would provide only an upper-bound estimate, not a confirmed EQIBank deposit.
This story draws on original reporting from Decrypt.
