Tether disclosed exposure to EQIBank as the bank faces a US government civil forfeiture complaint, raising questions about whether the stablecoin issuer's assets at the bank might be needed to back USDT redemptions.
On September 25, Tether told PYMNTS that its exposure to EQIBank was less than 0.034% of the Tether group's total assets. The company provided no dollar amount or indication that the exposure involves USDT reserves.
The Seizure and Unresolved Ownership
The government filed a civil forfeiture complaint in July targeting property associated with payment processor Capstone Limited. A court record lists approximately $83.03 million in three bank balances and roughly 1.18 million USDT at two addresses, totaling about $84.2 million at $1 per USDT. A subsequent court order identifies the bank accounts as held in Capstone's name, though the record does not identify the listed property as belonging to Tether.
EQIBank sought the return of seized property in a related action, but a court record shows its motion was denied. The denial did not decide the ultimate forfeiture case or establish ownership of the property. The government's claim to the assets remains separate from Tether's undisclosed exposure to the bank.
Reserve Connection Remains Unclear
The critical question for USDT holders centers on whether Tether's EQIBank exposure involves funds needed for stablecoin redemptions. Tether's less-than-0.034% figure refers to group assets, while its published USDT reserve figures describe Tether International, a separate issuer entity. The company has not provided a bridge between the two figures.
As of June 30, Tether International reported $187.75 billion in assets and $183.64 billion in liabilities. The underlying attestation does not identify an EQIBank balance or explain the company's exposure as of September. Tether has not stated whether minting or redemptions have been interrupted.
For USDT holders, the decisive facts remain the size of Tether's actual EQIBank balance, whether any portion belongs to USDT reserves, and whether Tether retains access to those funds. The $84.2 million in the forfeiture case should not be assumed to represent a measured loss to USDT holders.
