$81 Million Seized from Capstone Accounts Amid Allegations of Misrepresentation and Crypto Scheme
US authorities have seized millions of dollars from bank accounts and cryptocurrency wallets linked to Capstone, a Montana-based payments company. The seizures include nearly $81 million from Capstone's Wells Fargo accounts and around $2 million from a JPMorgan Chase account.
The US Department of Justice alleges that Capstone misrepresented itself as an information technology company when opening accounts with major banks. This is the basis for a civil forfeiture filing, which also accuses Capstone of processing payments for two crypto companies through an agreement with a Dominica bank.
Prosecutors further allege that Capstone engaged in a scheme impersonating FBI agents to defraud victims and convert illicit cash proceeds into cryptocurrency. However, Brian Klein, a lawyer for Capstone from Cooley law firm, denies these allegations, stating there are 'numerous fatal flaws' in the government's theories.
Tether has confirmed it is a customer of the Dominica bank but claims to have had no knowledge of Capstone's alleged fraudulent activities. The Justice Department's court filings do not accuse any wrongdoing by other involved firms, including Tether or the banking institutions.