U.S. authorities have seized funds from bank accounts connected to Capstone Ltd., a payments firm that prosecutors allege moved hundreds of millions of dollars on behalf of Tether, the issuer of the USDT stablecoin, and Bitfinex, a cryptocurrency exchange, through the Caribbean-based EQIBank, according to reporting cited by Coin Bureau.

Approximately $84 million has been frozen in Capstone-linked accounts at Wells Fargo and JPMorgan Chase, according to court filings. The allegations center on how Capstone gained access to the U.S. banking system and subsequently processed payments for EQIBank customers. The Financial Times report cited by Coin Bureau follows earlier reporting from The Information, which said U.S. authorities seized roughly $90 million from Capstone accounts in July. The court filings indicate the accounts were held at Wells Fargo and JPMorgan Chase.

Capstone Accused of Misrepresenting Its Business

According to the reported court filings, Capstone presented itself to U.S. banks as an information technology company while using its accounts to move funds for EQIBank customers. The Information reported that EQIBank turned to Capstone in 2024 to obtain access to the U.S. banking system. Capstone reportedly maintained banking relationships with major U.S. banks and offered to facilitate money transfers for the Caribbean bank's customers. Access to U.S. banks is a core operational dependency for crypto-linked businesses, since dollar payments made on behalf of customers ultimately have to be processed through regulated financial institutions.

The Justice Department's allegations concern Capstone's conduct and do not establish wrongdoing by Tether or Bitfinex. A lawyer representing Capstone told The Information that the company denies wrongdoing and plans to challenge the government's seizure.

Tether and Bitfinex Say They Were EQIBank Customers

Tether confirmed that it was a customer of EQIBank but said it had no knowledge of the alleged by the Department of Justice against Capstone. The company also said its assets held at EQIBank represented less than 0.034 of the group's assets, though it did not disclose a dollar amount in that statement. Issuers of dollar-backed stablecoins typically spread reserves across a range of institutions and instruments to limit exposure to any single bank.

According to the information cited in the original Coin Bureau post, Bitfinex and Tether have both said they were EQIBank customers but had no knowledge of Capstone's alleged misconduct.

The seizure has broader consequences for EQIBank itself. The Information reported that the bank said the seized funds represented about 80% of its monetary holdings and that the action left it facing a risk of collapse. EQIBank has sought to recover the seized assets through legal proceedings.

Separate Case Involved USDT and Elderly Victims

The reported investigation also connects Capstone to a separate case involving money allegedly stolen from elderly victims and subsequently converted into Tether's USDT stablecoin. U.S. authorities have pursued numerous cryptocurrency-related forfeiture cases involving funds allegedly obtained through fraud and converted into USDT. In one 2025 case, the Justice Department sought the forfeiture of more than $8.2 million in Tether connected to an investment fraud scheme, with court filings describing losses suffered by victims.

The allegations involving Capstone remain part of ongoing legal proceedings. The reported seizure concerns funds held in Capstone-linked accounts, while Tether has publicly characterized its exposure to EQIBank as limited and denied knowledge of the alleged misconduct.

This article was originally published by HOKA.NEWS.