DOJ Seizes $84M from Tether-Linked Capstone
- The DOJ seized $84 million from Capstone’s accounts at Wells Fargo and JPMorgan Chase.
- Capstone moved over $700 million for Tether and Bitfinex, highlighting crypto banking challenges.
- Capstone allegedly converted stolen elder fraud cash into stablecoins, prompting Tether to deny wrongdoing.
- Funds frozen represent less than 0.034% of Tether’s assets but account for about 80% of EQIBank’s holdings.
- EQIBank, linked to Capstone, warned it might face liquidation due to the seizure.
The Department of Justice’s action against Capstone highlights ongoing difficulties for crypto companies like Tether in accessing traditional banking services through third-party processors. The case underscores the complex landscape these entities navigate post-Operation Chokepoint.
The seizure of $84 million significantly impacts EQIBank more than Tether, given its substantial share of the bank’s holdings, potentially leading to institutional liquidation processes for EQIBank.(Source)
