Federal prosecutors in the US have initiated the seizure of approximately $84.2 million in assets from Capstone Ltd. The civil forfeiture complaint, filed on July 15, alleges that the firm acted as an intermediary for illegal banking transfers benefiting Tether and Bitfinex.
The funds were held in accounts at Wells Fargo and JPMorgan. The largest portion, totaling about $79.11 million, was located in a Wells Fargo Securities account. Prosecutors claim Capstone moved hundreds of millions of dollars at the direction of the Caribbean-based EQIBank.
EQIBank stated that the frozen assets account for roughly 80% of its total holdings, estimating its portfolio at $89 million. A federal district judge in California has denied the bank's motion to return the seized property.
Tether reported that its exposure to EQIBank represents less than 0.034% of its total assets. The company noted that the forfeiture case has a minimal impact on its balance sheet.
In 2021, Tether and Bitfinex settled with the New York Attorney General regarding claims of covering up an $850 million loss. The settlement included an $18.5 million fine and a prohibition on serving customers in New York.
