US Seeks to Keep $84.2 Million Tied to Tether Payment Processor

The US Department of Justice has filed a forfeiture complaint seeking $84.2 million that moved through accounts of a payments firm linked to Tether's transfers. Prosecutors are targeting Capstone Ltd. and EQIBank, a bank that handled part of the processing behind USDT issuance and redemption. For the market's largest stablecoin, this marks the first major legal blow in years.

What Capstone Is Accused Of

The complaint was filed on July 15 in the Eastern District of California, with Judge Dale A. Drozd overseeing the case. Prosecutors allege that Capstone Ltd., based in Montana, operated for years as an unlicensed money transmitter in at least six states. The firm presented itself to banks as an ordinary IT services provider, which let it open accounts without raising red flags. Investigators say hundreds of millions of dollars moved through these accounts on behalf of individuals and entities tied to Tether and Bitfinex, though only part of that sum is now subject to forfeiture.

Capstone's owners are named in court filings as Kotaro Shimogori and Mary Jeanne Thompson. The FBI executed a search warrant at a Sacramento residence before the complaint was filed. The company's attorney said the clients deny any wrongdoing and hope to resolve the matter quickly, according to the Financial Times.

Why EQIBank Is Under Pressure

The bulk of the sum, $79.11 million, sat in a Wells Fargo Securities account under Capstone's name until it moved out on September 14. Another $2.06 million was held at JPMorgan Chase, $1.86 million in a separate Wells Fargo account, and just over $1 million was split across two USDT wallets.

Behind Capstone's transfers stood EQIBank, a Dominica-licensed digital bank that directed how the money moved. The bank markets itself as a financial home for crypto and fintech firms that struggle to open accounts at major US banks. EQIBank has already warned clients that losing these funds would wipe out roughly 80% of its total holdings and could push it toward liquidation.

Tether's Response and the Scale of Its Assets

Tether confirmed that EQIBank handled part of its transfers during USDT issuance and redemption, but insists it had no knowledge of the conduct alleged against Capstone.

"We had no information about Capstone's conduct alleged by the Department of Justice."

- Tether spokesperson, in an official comment

The company puts its own exposure at under 0.034% of group assets, which stood at $187.75 billion at the end of the second quarter of 2026. By comparison, USDT's own market capitalization stood at roughly $184 billion at the end of last week, slightly below the group's total reserves. The gap between those two figures is made up of cash, short-term US Treasury bills, and other assets Tether holds above the minimum backing level. This isn't Tether's first run-in with prosecutors: in 2021, the company and its sister exchange Bitfinex agreed to pay $18.5 million to the New York Attorney General after admitting USDT reserves weren't always fully dollar-backed, and stopped trading in the state.

Risks for USDT Holders

For an ordinary USDT holder, the complaint itself doesn't threaten funds directly: the case targets a specific payment intermediary, not the token's reserves. But Tether's added exposure to Capstone and EQIBank extends the list of counterparties whose reliability has come under question this year. Tether did not answer a direct question about how the seizure could affect its customers.

Those who regularly sell USDT for hryvnia through exchangers should watch Tether's official statements over the coming weeks. If the court doesn't return the funds, the company's partner chain will need rebuilding, which could affect the speed and cost of transfers on the USDT network.

• Tether's reserves remain under independent audit, and 0.034% exposure doesn't change USDT's backing structure.
• EQIBank handled only part of the token's issuance and redemption flow, so shutting down one channel won't paralyze the whole network.
• The 2021 case shows Tether is willing to pay fines and adjust procedures to keep its status as the largest stablecoin.
• Prosecutors have not brought claims directly against Tether or Bitfinex, only against their payment intermediary.

What Happens Next With the Seized Funds

Capstone and EQIBank have already filed an innocent-owner defense over the funds. Under Supplemental Rule G, which governs these forfeiture cases, a claimant has 21 days to respond once a formal claim is filed with the court.

Civil forfeiture lets the government seize assets tied to alleged crimes even without a conviction against a specific person. For now, the funds are only frozen. A final ruling could still take months or even years of litigation. The coming weeks will show whether EQIBank keeps its license and whether Tether needs to find a new partner for USDT transfers.