Tether's Bank Accounts Seized by DOJ in Multi-Million Dollar Fraud Probe
The US Department of Justice has seized millions of dollars from bank accounts and crypto wallets linked to Tether Limited, the company behind the stablecoin Tether. According to reports by the Financial Times, the investigation is related to an unlicensed payment processing business called Capstone, which allegedly engaged in a massive fraud scheme.
Capstone is alleged to have misrepresented itself as an information technology firm and scammed elderly individuals, converting their money into crypto. Tether's connection to the case came through its relationship with EQIBank, a legal offshore firm that handled Tether's money flow through Capstone.
Tether and Bitfinex, its parent company iFinex, have denied any knowledge of the alleged fraudulent conduct by Capstone. They stated they are merely 'customers' of EQIBank.