U.S. Court Seizes $84.2 Million in Capstone Assets, Tether's Exposure Minimal
Written with artificial intelligence.
A U.S. court has disclosed the seizure of approximately $84.2 million in assets linked to Capstone Limited, including two cryptocurrency addresses holding about 117,000 USDT. Tether claims that the seized assets constitute less than 0.034% of its total holdings.
Asset Seizure Overview
On September 14, a U.S. District Court in Eastern California revealed a court order for the seizure of assets under the name Capstone Limited, totaling about $84.2 million (approximately 1.14 trillion KRW). This includes funds held in various bank accounts, specifically:
- $79.11 million in Wells Fargo Securities account
- $1.86 million in a Wells Fargo account
- $2.06 million in a JP Morgan Chase account
- Approximately 117,000 USDT in two cryptocurrency addresses
The court documents do not specify that these assets belong to Tether (USDT) or Tether International.
Legal Context
This seizure is part of a civil forfeiture proceeding, separate from any criminal convictions. The government is claiming the assets, but it has not been determined whether they will ultimately be forfeited to the government. EQI Bank, which claims that the seized assets represent about 80% of its liquid assets, has sought the return of these assets but had its request denied by the court in July. The ongoing legal proceedings regarding EQI Bank have been recorded since July, with related cases noted in September.
Tether's Position
Tether stated that the assets held by EQI Bank account for less than 0.034% of its total assets. The exact dollar amount and whether these funds are included in Tether's reserves were not disclosed. A Tether spokesperson indicated that they were unaware of the actions taken by the U.S. Department of Justice concerning Capstone prior to the announcement.
Tether International's reported total assets as of June 30 were approximately $187.75 billion, with total liabilities of about $183.64 billion, showing a difference of around $4.11 billion.
Future Considerations
The court's records confirm that the seizure pertains to accounts and crypto addresses under Capstone's name, meaning there is no conclusive evidence that Tether's USDT reserves have been affected. The ongoing legal battle regarding the return of funds to EQI Bank remains a significant issue, and the final outcome of the civil forfeiture proceedings will likely influence Tether’s asset recovery potential. Key aspects to monitor include the balance of Tether at EQI Bank, whether those funds are included in the reserves, and the likelihood of recovering the seized assets.