EQIBank, a bank used by Tether, had 80% of its assets, approximately $84 million, frozen as part of a seizure targeting Capstone Limited. According to a complaint for forfeiture filed in July, Capstone Limited allegedly misrepresented itself to US banks including Wells Fargo, JPMorgan Chase and Citibank, claiming to be an application development company rather than a money services business. A total of $337 million passed through Wells Fargo accounts, with approximately two-thirds directed to individuals and entities acting on behalf of Tether and Bitfinex. The complaint also alleges that some funds processed by Capstone were linked to impersonation fraud schemes. Following the seizure, EQIBank declared it was facing a major liquidity crisis and had been warned by Dominica’s regulator of potential liquidation.
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