US Seizes $89 Million from Tether's Banking Partner, Raising Redemptions Concerns

A US federal court has seized approximately $89 million tied to EQIBank, an offshore bank based in Dominica that handled wire transfers for Tether's USDT purchases and redemptions. This accounts for around 80% of EQIBank's total cash holdings.

EQIBank provided banking services to Tether, including processing wire transfers related to USDT transactions. The seizure has raised concerns about the potential impact on USDT holders who may be trying to redeem their tokens through EQIBank.

Tether has stated that its exposure to EQIBank is minimal, with less than 0.034% of its reserves at risk. However, the bank's situation remains uncertain as it fights the forfeiture in California federal court.