EQIBank seeks return of $89 million seized by US authorities

  • EQIBank seeks recovery of approximately $89 million seized from Capstone-linked accounts.
  • US prosecutors seek forfeiture of roughly $84.2 million in cash and USDT.
  • Tether says EQIBank assets represent less than 0.034% of group assets.

EQIBank is seeking to recover approximately $89 million seized by US authorities from Capstone-linked accounts, an amount the Dominica-licensed bank says equals about 80% of its monetary holdings and threatens its ability to continue operating. Federal prosecutors are pursuing forfeiture of roughly $84.2 million, including funds held in Capstone accounts at Wells Fargo and JPMorgan Chase and USDT from two cryptocurrency addresses. Tether confirmed that EQIBank provided banking services connected to USDT purchases and redemptions, while saying it had no knowledge of the conduct alleged against Capstone and that assets held at the bank represent less than 0.034% of group assets. Based on Tether's June 30 asset total of $187.75 billion, that ceiling equates to roughly $63.8 million, although Tether has not disclosed its actual balance. Judge Dale A. Drozd denied EQIBank's initial property-return motion after the government opened a civil forfeiture case; the related proceedings remain active and have not resolved ownership of the funds.

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