Tether reports 'minimal' connection to financial institution involved in $84M DOJ asset freeze

Tether reports 'minimal' connection to financial institution involved in $84M DOJ asset freeze

According to a Tether representative, just 0.034% of the company's aggregate holdings were maintained at a financial institution named in a US Justice Department civil forfeiture action.

The company behind the USDT stablecoin, Tether, has stated that its exposure was minimal in relation to holdings maintained at a financial institution that allegedly instructed a payment processing firm to facilitate the transfer of hundreds of millions of dollars on its account.

Following media coverage connecting Tether and Bitfinex to a payments operation based in Montana that was referenced in a Department of Justice civil forfeiture filing, a representative from the company informed Cointelegraph that they possessed "no knowledge" regarding any of the purported activities. Tether acknowledged maintaining a customer relationship with EQIBank, the financial institution that the Justice Department claims instructed the payments firm, Capstone, to facilitate incoming and outgoing transfers, though the volume of assets maintained at the institution constituted just 0.034% of the group's aggregate holdings.

Federal prosecutors have allegedly frozen approximately $84 million held in Capstone's accounts in connection with the complaint. Officials from the Justice Department claimed that the operation functioned without proper licensing and had processed transactions for "hundreds of individuals and entities" acting on behalf of Tether and Bitfinex, based on reporting from the Financial Times.

When asked about potential impacts on its customer base resulting from the seizure, a Tether spokesperson did not provide a response. Based on data from Friday, the USDT stablecoin maintained a market capitalization of approximately $184 billion.