Tether's EQIBank Exposure Sparks Concern Over USDT Reserves

Tether has disclosed its exposure to EQIBank as the bank fights a US seizure involving payment processor Capstone Limited, raising questions about access to assets that might back $USDT.

The stablecoin issuer told PYMNTS that the exposure was less than 0.034% of the Tether group's assets, but did not provide a dollar balance or indicate whether the money is part of $USDT reserves.

A court record lists about $83.03 million in three bank balances and roughly 1.18 million $USDT at two addresses, which combined at a $1 value for each $USDT, totals around $84.2 million.

The government filed a civil forfeiture complaint in July, while EQIBank sought the return of seized property in a separate but related action, which was denied by the court.