DOJ Seizes $84 Million from Tether‑Linked Payment Processor Capstone

The U.S. Department of Justice executed a civil forfeiture order against Capstone, a Montana‑based payment processor, seizing $84 million held in the firm’s accounts at Wells Fargo and JPMorgan Chase.

Background on Capstone’s Role

Capstone was used by Tether, the issuer of the USDT stablecoin, and its sister exchange Bitfinex to open and maintain U.S. bank accounts. The processor acted as a bridge, allowing the companies to settle payments to “hundreds of individuals and entities” without holding a direct banking license.

Financial Flow and Allegations

Prosecutors allege that Capstone moved more than $700 million through its Wells Fargo account, with roughly two‑thirds of those funds directed on behalf of Tether and Bitfinex to recipients worldwide. The DOJ also claims Capstone converted cash obtained from impersonation fraud targeting elderly citizens into stablecoins.

Impact on Associated Institutions

EQIBank, a Dominica‑registered bank that facilitated the relationship between Capstone, Tether, and Bitfinex, warned that the seized $84 million represents about 80 % of its holdings, potentially triggering an institutional liquidation process. Tether and Bitfinex acknowledged being customers of EQIBank but denied knowledge of any wrongdoing by Capstone.

Regulatory Context

The seizure highlights ongoing challenges for crypto firms in accessing traditional banking services in the United States, even after the conclusion of Operation Chokepoint 2.0. Companies continue to rely on third‑party processors to navigate banking restrictions.