Stablecoin issuer Tether mentioned it has little or no publicity to a lender seized by U.S. authorities on Thursday.
Tether mentioned property it holds at EQIBank signify lower than 0.034% of its complete property, after the Dominica-licensed lender was caught up in a U.S. asset seizure that it mentioned might power it into liquidation, in keeping with stories by the Monetary Instances and The Info.
“Tether had no data of the conduct by Capstone alleged by the Division of Justice,” a Tether spokesperson instructed CoinDesk through e-mail. The corporate mentioned property held at EQIBank had been restricted to “lower than 0.034% of the property of the group,” however didn’t disclose the precise greenback quantity.
Based mostly on Tether’s June report of $187.75 billion in group property, the proportion the spokesperson mentioned was in danger would put the EQIBank publicity at roughly $64 million.
EQIBank used Capstone, a U.S. fee processor, to carry funds and transfer buyer cash by accounts at Wells Fargo and JPMorgan Chase, in keeping with court docket filings. U.S. prosecutors seized cash from these Capstone accounts and filed a civil forfeiture case, alleging that Capstone misrepresented its enterprise to banks.