Tether Responds to Partner Bank EQIBank's $89 Million Seizure: Its Own Exposure Less Than 0.034% of Total Assets

Odaily News: Stablecoin issuer Tether stated that its exposure to EQIBank, a Dominica-licensed bank whose assets were seized by U.S. authorities, accounts for less than 0.034% of the group's total assets. Based on Tether's total group assets of $187.75 billion disclosed in June of this year, its maximum exposure to EQIBank is approximately $64 million. However, Tether did not disclose the specific amount and stated that it was previously unaware of the actions of U.S. payment processor Capstone as alleged by the U.S. Department of Justice.

According to court documents, EQIBank held and transferred customer funds through Capstone, with the relevant funds deposited in accounts at Wells Fargo and JPMorgan Chase. U.S. prosecutors have seized the funds in these accounts and filed a civil forfeiture lawsuit, alleging that Capstone misrepresented the nature of its business to the banks. EQIBank claims that approximately $89 million in assets were seized, equivalent to about 80% of its monetary assets, and it may face liquidation as a result. EQIBank previously provided banking services to Tether, including processing wire transfers related to USDT purchases and redemptions.

Tether's disclosure does not currently indicate a direct threat to its USDT reserves or dollar peg, but it highlights the counterparty risks stablecoin issuers face when accessing and redeeming funds through fiat channels such as banks and payment processors. (CoinDesk)