Tether Discloses EQIBank Exposure Amid $84M US Asset Seizure

Tether's EQIBank Exposure Comes to Light

Tether disclosed a less than 0.034% exposure to EQIBank, as the bank defends itself against a US government seizure involving Capstone Limited. The seizure centers around approximately $83.03 million held in bank accounts and 1.18 million USDT, totaling roughly $84.2 million at a 1:1 valuation.

The US government filed a civil forfeiture complaint in July, but court records do not explicitly identify the seized property as belonging to Tether. EQIBank's attempt to reclaim the seized assets was recently denied by a court, though this does not resolve the underlying forfeiture case or establish ownership.

Unclear Link to USDT Reserves

Tether’s statement regarding its exposure is calculated against the total assets of the Tether group, not specifically Tether International, the entity responsible for USDT issuance. As of June 30, Tether International reported $187.75 billion in assets and $183.64 billion in liabilities, leaving a surplus of $4.11 billion. However, this figure doesn't clarify Tether's EQIBank holdings in September or their current accessibility.

The key concern is whether the seizure impacts Tether’s ability to fulfill USDT redemptions. Currently, there's no evidence to suggest a shortfall or interruption in minting or redemption processes. The decisive factors remain the size of Tether’s EQIBank balance, whether it's part of USDT reserves, and Tether’s continued access to those funds. The $84.2 million seizure should not be immediately interpreted as a direct loss for USDT holders.

Source: CryptoSlate