US Prosecutors Seize $84M from Montana Firm Over Potential Crypto Fraud
A Montana-based payments firm, Capstone, has had nearly $84 million in assets seized by U.S. prosecutors over potential fraud allegations.
The civil forfeiture targets Capstone, which allegedly posed as an IT company to open bank accounts and process payments for cryptocurrency firms through a bank in Dominica.
Court filings state that Capstone ran a scheme to convert fraud proceeds into cryptocurrency by posing as FBI agents, and nearly $81 million was seized from Capstone's accounts at Wells Fargo, with about $2 million taken from an account at JPMorgan Chase.
Tether, the issuer of the dollar-pegged token USDT, said it had no knowledge of Capstone's alleged conduct, but a spokesperson did address the situation, stating 'Tether had no knowledge of the conduct by Capstone alleged by the Department of Justice.'