A US seizure of $84 million in assets has raised a major question for Tether

In a Sept. 25 statement to PYMNTS, Tether characterized its exposure to EQIBank as less than 0.034% of the Tether group's assets. The comment came as EQIBank contests a US seizure tied to payment processor Capstone Limited, and it raises a question about access to assets that might back USDT. Tether gave no dollar balance and did not say whether the money forms part of USDT reserves.

The forfeiture record points to Capstone first

The government filed a civil forfeiture complaint in July. Court records describe about $83.03 million across three bank balances and roughly 1.18 million USDT at two addresses. If each USDT is valued at $1, the total is about $84.2 million. A later court order says the bank accounts were held in Capstone's name. The order does not identify the listed property as Tether's.

EQIBank tried to recover the seized property through a separate but related action. A court record shows the bank's motion was denied. That ruling did not resolve the ultimate forfeiture case or determine ownership. The government's asset claim and Tether's undisclosed EQIBank exposure remain separate.

Tether's disclosure does not connect to the reserve statement

The reference point in Tether's statement is important. The less-than-0.034% measurement applies to group assets. Published USDT reserve figures apply to Tether International, an issuer entity, and use a different date. Tether has not provided a number that bridges the two disclosures.

As of June 30, Tether International reported $187.75 billion in assets and $183.64 billion in liabilities, leaving an excess of $4.11 billion. The underlying attestation describes the issuer's position at that point in time and does not identify an EQIBank balance. The June excess gives context for the scale of the issuer's reported backing, but it does not tell holders how much the Tether group had at EQIBank in September or whether those funds remain accessible.

The unresolved issue is whether Tether can use the exposure

A bank dispute becomes a redemption issue if it stops an issuer from using funds needed to meet requests. The Capstone filing does not trace any seized balances into Tether International's USDT reserves. Tether's exposure statement also does not say that minting or redemptions have been interrupted. The result is a counterparty-access question, not an established shortfall or halt.

For USDT holders, the decisive facts are the size and legal owner of Tether's EQIBank balance, whether any of it belongs to USDT reserves, and whether Tether can use it. The $84.2 million in the forfeiture case should not be treated as a measured loss to USDT holders.

Related CryptoSlate coverage broadens the picture

CryptoSlate's related coverage has also connected Tether and Binance to a separate US forfeiture case involving a $1.5 billion Iran oil network. Another piece cites Paolo Ardoino saying 650 million people decentralized US debt, while noting Tether still controls the Treasury bills (T-bills). A further report says Tether claims $1.5 billion profit, but hidden math reveals a $4.2 billion hit that halved its safety cushion in 90 days.

The post first appeared on CryptoSlate.