CryptoSlate
Tether disclosed exposure to EQIBank as the bank fights a US asset seizure involving payment processor Capstone Limited. The government’s civil forfeiture case lists about $83.03 million in three bank balances and roughly 1.18 million USDT, worth about $84.2 million combined. Tether told PYMNTS on Sept. 25 that its exposure was less than 0.034% of group assets, without giving a dollar balance or saying the funds were part of USDT reserves.
Why it matters
The legal record does not identify the listed property as Tether’s. EQIBank separately sought the return of seized property, but a court denied that motion without deciding the ultimate forfeiture case or establishing ownership of the funds.
The key distinction is between Tether’s group-level exposure and the assets backing USDT. Tether International reported $187.75 billion in assets, $183.64 billion in liabilities and $4.11 billion in excess as of June 30. Those figures describe the issuer’s position at that date and do not identify an EQIBank balance or show whether the bank exposure remains accessible.
Market impact
A bank dispute becomes a redemption issue only if it prevents an issuer from accessing funds needed to meet requests. The Capstone filing does not trace the seized balances into Tether International’s USDT reserves, while Tether has not indicated that minting or redemptions have been interrupted.
For USDT holders, the material questions are the size and legal owner of Tether’s EQIBank balance, whether any portion belongs to reserves, and whether Tether can use it. The $84.2 million in the forfeiture case is not an established loss to USDT holders, but the disclosure keeps counterparty access and reserve transparency in focus.
Frequently asked questions
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What assets are listed in the US forfeiture case?
The court record lists about $83.03 million in three bank balances and roughly 1.18 million USDT, worth about $84.2 million combined.
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Did Tether say the seized funds back USDT?
No. Tether disclosed exposure to EQIBank but did not provide a dollar balance or say the funds were part of USDT reserves.
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Does the court record identify the seized property as Tether’s?
No. A subsequent order identifies the bank accounts as held in Capstone’s name and does not identify the listed property as Tether’s.
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What does Tether’s 0.034% figure measure?
Tether said its EQIBank exposure was less than 0.034% of group assets. That figure does not bridge the exposure to Tether International’s USDT reserve disclosures.
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Has the case shown a USDT redemption or reserve shortfall?
No. The filing does not trace the seized balances into USDT reserves, and Tether has not indicated that minting or redemptions were interrupted.
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