⏱ 2 min read
The figure is measured against “group assets” and Tether has not tied any seized funds to USDT reserves, leaving the redemption risk unproven.
Tether disclosed a small exposure to EQIBank as the bank contests a U.S. seizure connected to payment processor Capstone Limited. On Sept. 25, Tether told PYMNTS that the exposure is less than 0.034% of the Tether group’s assets, without providing a dollar amount or stating that the funds are part of USDT reserves.
U.S. court filings in a July civil forfeiture case list about $83.03 million held across three bank balances and roughly 1.18 million USDT at two addresses. Taken at $1 per USDT, that totals about $84.2 million. A subsequent court order identifies the bank accounts as held in Capstone’s name and does not identify the listed property as Tether’s.
In a related action, EQIBank sought the return of seized property. A court record shows its motion was denied. That ruling did not resolve the government’s forfeiture claim or establish ownership of the assets.
Why it matters: for a stablecoin issuer, a frozen or inaccessible bank balance can become a redemption problem if it ties back to reserves needed to meet withdrawals. The Capstone filings do not trace the seized balances into Tether International’s USDT reserves, and Tether’s statement did not indicate any interruption to minting or redemptions.
The denominator problem complicates interpretation. Tether framed the exposure as a share of “group assets,” while its published reserve reporting covers Tether International, the issuer entity, and on a different date. As of June 30, Tether International reported $187.75 billion in assets and $183.64 billion in liabilities, an excess of $4.11 billion, and its attestation does not identify an EQIBank balance. Tether has not provided a figure that bridges group assets to issuer-level reserves.
Scale and uncertainty: if the 0.034% figure were applied to Tether International’s June asset base, it would imply about $63.8 million—illustrative only, since Tether explicitly referenced group assets and a different date. Separately, the seized amounts in court records total roughly $84.2 million, but the accounts are in Capstone’s name. Without an issuer-level mapping, the potential reserve impact remains unproven.
What to watch next
- An issuer-level disclosure tying (or excluding) any EQIBank balances from USDT reserves.
- Any change in mint/redeem operations or delays in redemptions.
- New court rulings that determine ownership or release funds.
This content is for informational purposes only and does not constitute financial advice.
🧠 HafidWatch Take
Tether’s reported exposure to EQIBank is minimal on a group assets basis, leaving the true reserve risk uncertain due to the mismatch in denominators. Court documents show the seized accounts are held in Capstone’s name, not Tether’s, and there have been no reported issues with USDT redemptions. Clarification would come from an issuer-level disclosure confirming whether EQIBank balances are included in USDT reserves, or from any impact on minting and redemption activities. For context, applying the 0.034% figure to Tether International’s June asset base would approximate $63.8 million, though Tether referenced a different date and the broader group in its statement.
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