DOJ Seizes $84 Million From Tether-Linked Payment Processor Capstone, Pushing Caribbean Banking Partner EQIBank Toward Collapse
DOJ Seizes $84 Million From Tether-Linked Payment Processor Capstone, Pushing Caribbean Banking Partner EQIBank Toward Collapse #
US federal prosecutors have seized approximately $84.2 million from bank accounts linked to Capstone Ltd., a US-based payment processor that allegedly routed hundreds of millions of dollars through the American banking system on behalf of Dominica-licensed EQIBank and its crypto clients, including stablecoin issuer Tether and its sister exchange Bitfinex.
The Department of Justice filed a civil forfeiture complaint on July 15, 2026, in the US District Court for the Eastern District of California. A federal court order confirmed on September 14 that the seized assets include approximately $79.11 million from a Wells Fargo Securities account, around $1.86 million from Wells Fargo Bank, roughly $2.06 million from JPMorgan Chase, and a smaller amount of USDT and other crypto holdings. Civil forfeiture actions target property rather than individuals, and the government does not need a criminal conviction to pursue permanent confiscation.
Court filings say EQIBank used Capstone to hold customer funds and process wire transfers, including transactions connected to Tether’s USDT stablecoin purchases and redemptions and Bitfinex-related activity, through accounts at the two banks. Prosecutors allege that Capstone misrepresented the nature of its business when opening those accounts, hiding its role as a payment conduit for a Caribbean offshore bank serving crypto firms.
The seizure has severely strained EQIBank’s finances. The bank says US authorities took approximately $89 million in funds held through Capstone, a figure it says represents about 80% of its total monetary holdings. EQIBank filed a motion in late June seeking the return of the property, but a federal judge denied that request after prosecutors formally filed the forfeiture complaint. The bank has warned it could face liquidation if the funds are not recovered.
Tether said its exposure is minimal. In a written response, the company confirmed it is a customer of EQIBank and that the bank handled wire transfers for USDT-related activity, but said it had no knowledge of the conduct prosecutors attributed to Capstone. Tether’s most recent attestation, signed off by KPMG, reported $187.75 billion in total assets and a $4.11 billion excess reserve buffer. The company said its EQIBank exposure represents less than 0.034% of group assets.
Capstone has also been linked in reports to a separate investigation involving funds allegedly stolen from elderly victims that were subsequently converted into USDT, though that case is distinct from the civil forfeiture proceeding. The Eastern District of California case is now in a public notice phase, giving parties with a claimed interest in the seized property up to 60 days from the first publication date to file claims, followed by a 21-day window to respond to the government’s complaint.
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