Tether has responded to allegations regarding its involvement with EQIBank, a bank linked to a recent $84 million seizure by US prosecutors. The stablecoin issuer clarified that it holds only a minimal amount of assets at the bank, constituting just 0.034% of its total assets.
The Department of Justice has accused EQIBank of directing a payments business, Capstone, to facilitate illegal transfers of hundreds of millions of dollars. Tether, along with Bitfinex, was mentioned in a civil forfeiture complaint related to these transactions.
A spokesperson for Tether emphasized that the company had "no knowledge" of the alleged misconduct and confirmed its status as a customer of EQIBank. However, they did not comment on how the seizure might impact Tether's customers.
As of the latest reports, Tether's USDT stablecoin maintains a market capitalization of approximately $184 billion, despite the ongoing scrutiny from US authorities.
This situation highlights the regulatory challenges facing cryptocurrency firms as they navigate relationships with banking institutions amid increasing oversight.