The US Department of Justice has filed a civil forfeiture complaint seeking to seize $84.2 million linked to payment processing for Tether. The funds were held in accounts associated with Capstone Ltd., a Montana-based firm that allegedly operated as an unlicensed money transmitter in at least six states while presenting itself as an IT services provider.
The seized assets include $79.11 million from a Wells Fargo Securities account, $2.06 million from JPMorgan Chase, $1.86 million from another Wells Fargo account, and over $1.1 million in USDT stablecoins. Owners Kotaro Shimogori and Mary Jeanne Thompson are named in the complaint, and the FBI has executed a search warrant at a residence in Sacramento.
Prosecutors allege that EQIBank, a Dominica-licensed digital bank, directed Capstone's money transfers. EQIBank stated that the loss of these funds could lead to its liquidation, as they represent approximately 80% of the bank's total holdings. Capstone and EQIBank have filed an innocent-owner defense to contest the government's seizure of the assets.
Tether confirmed that EQIBank handled its USDT transfer operations but denied any knowledge of the alleged misconduct by Capstone. A Tether spokesperson noted that the total exposure is less than 0.034% of the company's total assets, which were reported at $187.75 billion at the end of the second quarter.
This legal action follows previous regulatory scrutiny involving Tether and Bitfinex. In 2021, both companies settled with the New York Attorney General regarding claims that USDT was not fully backed by dollar reserves, resulting in an $18.5 million fine and a prohibition on trading within the state of New York.
