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Invest Independently confirmed3 publishers 3 min read Published Updated

US bank accounts held $83 million of the $84.2 million DOJ seeks from a Tether-linked processor

DOJ is seeking $84.2 million from Tether-linked processor Capstone, almost all of it held in Wells Fargo and JPMorgan accounts with just $1.1 million in USDT. The Dominica bank behind Capstone says losing the funds could liquidate it, while Tether puts its exposure under 0.034% of assets.

The Investor · Invest desk

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Illustration accompanying US bank accounts held $83 million of the $84.2 million DOJ seeks from a Tether-linked processor
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What happened

  • The Justice Department filed a civil forfeiture complaint on July 15 in California seeking $84.2 million tied to Capstone, a Montana payments firm it says moved money for Tether without a licence.
  • Tether confirmed EQIBank handled its USDT purchase and redemption wires and put its own exposure at under 0.034% of group assets.
  • Capstone and EQIBank have filed an innocent-owner defense to recover the seized money.

Why it matters

  • What it costs cost If the government keeps the money, the smallest balance sheet in the chain, EQIBank, absorbs the loss, and the issuer barely registers it.
  • What it limits constraint A liquidated EQIBank would take out a bank Tether used for USDT purchase and redemption wires, forcing that dollar traffic onto other banks.
  • What it sets up precedent Building the case on a licence and bank balances gives prosecutors a way to reach stablecoin flows at the banks that fund minting and redemption, independent of any token freeze by the issuer.
  • What doesn't add up contradiction Tether's stated ceiling comes in below the government's claim, leaving open whether other EQIBank customers' dollars are inside the seized accounts.

Wells Fargo accounts in Capstone's name held $80.97 million of the total, and $79.11 million of that came from a single Wells Fargo Securities account on September 14 [3][14]. Add $2.06 million at JPMorgan Chase and the bank share comes to $83.03 million, or 98.6% of the $84.2 million sought [12]. The two USDT wallets held about 1.3% [13]. Prosecutors allege Capstone moved money in at least six states without a money-transmitter licence while telling banks it was an IT services company [2].

The narrowest reading of that concentration is that a processor directed by the bank that handled Tether's USDT purchase and redemption wires [8][5] would hold its float in dollars most of the time. A broader reading is that US enforcement against stablecoin activity is running through the fiat leg, where licences and bank accounts are subject to US courts. The third is that one complaint proves nothing about a trend. I think the first two are both right, within the limit the third sets: this filing reached USDT activity almost entirely through Wells Fargo and JPMorgan [12], and it is one filing. Later cases in which prosecutors seize stablecoin balances at scale would undercut the broader reading. In this one, the wallets yielded about $1.1 million [3].

On Tether's books the sum is small. The issuer reported $187.75 billion of assets at the end of the second quarter, $4.11 billion more than its liabilities, and $1.5 billion of net operating profit for the quarter [9]. The full $84.2 million is about 5.6% of that quarter's profit and 2% of the buffer [15]. EQIBank is at the other end of the scale. The bank has warned that losing the funds, roughly 80% of everything it holds, could push it into liquidation [8]. If that 80% refers to the whole $84.2 million, the bank holds about $105 million in total [17].

Tether's own figure leaves a gap. A spokesperson put the group's exposure at under 0.034% of assets [6]. Applied to $187.75 billion, that ceiling is about $63.8 million, roughly three-quarters of the government's claim [16]. Either the group's asset base is larger than the attested figure, or Tether does not count all of the seized money as its exposure. The statement did not say which.

Tether said it had "no knowledge of the conduct by Capstone alleged by the Department of Justice" [5]. An attorney for Capstone's owners, Kotaro Shimogori and Mary Jeanne Thompson, said the company "denies any wrongdoing" and hopes to "resolve this matter quickly," according to the Financial Times [4]. Civil forfeiture lets the government keep funds tied to an alleged crime without convicting their owner [7]. Under Supplemental Rule G, a claimant has 21 days to answer the complaint once a formal claim is filed [11].

What to watch

  • Whether the court accepts the innocent-owner defense and returns any of the $84.2 million to Capstone or EQIBank.
  • Whether EQIBank goes into liquidation, and which bank takes over Tether's USDT purchase and redemption wires.

Information, not investment advice. This story is general information about companies and markets, drawn from cited reporting. It is not a recommendation to buy, sell or hold any security; check the cited sources before acting.

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Reality

Evidence62
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Hype gap+25
Incentives65
Confidence60

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  1. [1]

    The Department of Justice filed a civil forfeiture complaint on July 15 in the Eastern District of California, before Judge Dale A. Drozd, targeting $84.2 million in accounts tied to Capstone Ltd., a Montana-based payments firm prosecutors say moved money for Tether without the required license.

    Reported Supported Source: Decrypt, citing the DOJ complaint; also reported by CryptopolitanView cited source
  2. [2]

    According to the complaint, Capstone operated as an unlicensed money transmitter in at least six states and presented itself to banks as an ordinary IT services company.

    Reported Supported Source: DOJ complaint, as reported by DecryptView cited source
  3. [3]

    Of the $84.2 million, $79.11 million came out of a Wells Fargo Securities account in Capstone's name on September 14; $2.06 million sat at JPMorgan Chase, $1.86 million in a separate Wells Fargo account, and just over $1.1 million was split across two wallets holding USDT.

    Reported Supported Source: DOJ complaint, as reported by Decrypt and CryptopolitanView cited source
  4. [4]

    An attorney for Capstone's owners, Kotaro Shimogori and Mary Jeanne Thompson, said the company "denies any wrongdoing" and hopes to "resolve this matter quickly."

    Reported Supported Source: Financial Times, as reported by DecryptView cited source
  5. [5]

    Tether confirmed EQIBank handled its USDT purchase and redemption transfers but said it had "no knowledge of the conduct by Capstone alleged by the Department of Justice."

    Reported Supported Source: Tether statement to Reuters, as reported by DecryptView cited source
  6. [6]

    A Tether spokesperson put total exposure at under 0.034% of group assets.

    Reported Supported Source: Tether spokesperson, as reported by DecryptView cited source
  7. [7]

    Civil forfeiture lets the government seize funds tied to an alleged crime without a criminal conviction against the money's owner.

    Reported Supported Source: DecryptView cited source
  8. [8]

    EQIBank, a Dominica-licensed digital bank that prosecutors say directed how Capstone moved money, has warned that losing those funds, roughly 80% of everything the bank holds, could push it into liquidation.

    Reported Supported Source: Decrypt, citing prosecutors and EQIBankView cited source
  9. [9]

    Tether's Q2 attestation by BDO showed assets of about $187.75 billion at end-June, a buffer of about $4.11 billion over liabilities, and net operating profit of $1.5 billion for the quarter.

    Reported Supported Source: BDO Q2 attestation, as reported by CryptopolitanView cited source
  10. [10]

    Capstone and EQIBank have filed an innocent-owner defense over the seized funds.

    Reported Supported Source: DecryptView cited source
  11. [11]

    Under Supplemental Rule G, which governs these forfeiture cases, any claimant has 21 days to answer the government's complaint once a formal claim is filed with the court.

    Reported Supported Source: DecryptView cited source
  12. [12]

    Bank-held funds total $83.03 million, about 98.6% of the $84.2 million sought.

    Derived Supported
  13. [13]

    The USDT wallets hold about 1.3% of the $84.2 million.

    Derived Supported
  14. [14]

    The two Wells Fargo accounts together account for $80.97 million.

    Derived Supported
  15. [15]

    $84.2 million is about 5.6% of Tether's Q2 net operating profit and about 2% of its $4.11 billion buffer.

    Derived Supported
  16. [16]

    0.034% of $187.75 billion is about $63.8 million, roughly three-quarters of the $84.2 million sought.

    Derived Supported
  17. [17]

    If the $84.2 million is roughly 80% of EQIBank's holdings, the bank holds about $105 million in total.

    Derived Insufficient

Sources

3 independent publishers whose own reporting we read for this story.

  1. cointelegraph.com

    1 article · September 25, 2026

    Tether says it had ‘limited’ exposure to bank linked to $84M US seizure
  2. cryptopolitan.com

    2 articles · September 26, 2026

    Tether and Bitfinex identified as unnamed firms in US case against payments group Capstone
  3. decrypt.co

    1 article · September 25, 2026

    US Prosecutors Want $84.2 Million From a Bank Tied to Tether

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