Tether Denies Deep Ties to Seized Payments Firm as Regulators Crack Down on Stablecoin Channels

Tether has responded to reports linking its stablecoin USDT to a Montana-based payments company, Capstone, that was seized by U.S. authorities as part of a civil forfeiture complaint.

The Justice Department alleges that Capstone handled payments for Tether and Bitfinex while operating as an unlicensed business directed by EQIBank.

Tether says its holdings at EQIBank account for just 0.034% of the group's total assets, contradicting reports suggesting a deeper connection between the company and Capstone.

The move comes amid growing regulatory scrutiny on payment channels tied to stablecoin issuers, with USDT maintaining a market capitalization of about $184 billion.