DOJ Seizes $84M From Tether-Linked Payment Processor Capstone
Key TakeawaysThe DOJ seized $84M from processor Capstone over illegal transfers, pushing EQIBank toward liquidation.Capstone moved $700M via US banks for Tether, highlighting ongoing crypto banking access challenges.Capstone also converted stolen elder fraud cash into stablecoins, prompting Tether to deny wrongdoing. Tether Gets Indirectly Hit in Capstones $84 Million Seizure Tether, the issuer of USDT, the largest stablecoin in the market, has been involved in a $84 million civil forfeiture case in California. According to the FT, Tether and Bitfinex relied on Capstone, a Montana-based payment provider, to open bank accounts and make payments to “hundreds of individuals and entities”without being licensed to do so, hiding the nature of its business and declaring it was an IT services company. Capstone was linked to Tether and Bitfinex through EQIBank, a bank registered in Dominica, which specialized in online payments and directed Capstone to lend these services to Tether and Bitfinex. Tether had invested in the bank and offered to increase its backing if the bank could provide“successful opening of at least one bank account”for Tether at Singapores DBS, according to documents reviewed by FT. In the civil forfeiture order executed against Capstone, the DOJ seized $84 million in the companys accounts at Wells Fargo and JPMorgan









