USDT Banking Partner Seized Over $84 Million Exposing Conventional Infrastructure

A recent U.S. seizure of over $84 million has shed light on the conventional financial infrastructure underlying the world's largest stablecoin, USDT.

The case involves Dominica-based EQIBank and U.S.-based payments firm CapStone, with prosecutors seeking to forfeit approximately $84.2 million from accounts linked to CapStone, including over $79 million at Wells Fargo Securities, $1.86 million at Wells Fargo Bank, and $2.06 million at JPMorgan Chase.

Tether confirmed that EQIBank provided banking services, including wire transfers connected to USDT purchases and redemptions. The structure highlights a key reality of the stablecoin market: when dollars enter crypto to buy USDT, they still need a path through the banking system.

The government alleges CapStone used accounts at major U.S. banks to move funds while failing to disclose its operation as a money transmitter and handling cryptocurrency-related transactions. Court filings also allege that some transfers involved proceeds from fraud.