US prosecutors allege that a payments business illegally transferred millions of dollars at the behest of EQIBank, where Tether holds some of the assets.
Stablecoin issuer Tether said it had limited exposure through assets held by a bank that instructed a payments company to transfer millions of dollars on its behalf.
In response to reports linking Tether and Bitfinex to a Montana-based payments business named in a civil forfeiture complaint filed by the Department of Finance, a spokesperson for the company told Cointelegraph that it had “no knowledge” of any of the alleged conduct. Tether has confirmed it is a customer of EQIBank, the bank the judiciary alleges has instructed payments company Capstone to send and receive money, but the amount held by the bank represents 0.034% of the group’s total assets.
US prosecutors reportedly seized about $84 million in Capstone’s accounts as part of the indictment. According to the Financial Times, Justice Department officials alleged that the business was unlicensed and made payments to “hundreds of individuals and entities” on behalf of Tether and Bitfinex.
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