US prosecutors seek $84.2 million from bank tied to Tether

September 26, 2026 at 02:25 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

The US Department of Justice filed a civil forfeiture complaint on July 15 targeting $84.2 million in accounts tied to Capstone Ltd., a payments firm prosecutors say moved money for Tether without the required license. The bulk of the money, $79.11 million, sat in a Wells Fargo Securities account. Tether confirmed EQIBank, the Dominica-based bank behind Capstone, processed its wire transfers, but said it had no knowledge of the conduct under investigation.

Key Facts

The forfeiture complaint targets $84.2 million across accounts at Wells Fargo Securities, JPMorgan Chase, and two USDT wallets.
Capstone Ltd. is accused of operating as an unlicensed money transmitter in at least six states while presenting itself to banks as an IT services company.
EQIBank warned that losing the funds, roughly 80% of its holdings, could force it into liquidation.
Tether put its exposure at less than 0.034% of group assets, which totaled $187.75 billion at the end of Q2.
Capstone's owners, Kotaro Shimogori and Mary Jeanne Thompson, deny any wrongdoing, according to their attorney.

The Forfeiture Complaint

The complaint, filed July 15 in the Eastern District of California before Judge Dale A. Drozd, names Capstone Ltd., a Montana-based payments firm. Prosecutors allege Capstone operated as an unlicensed money transmitter in at least six states and misrepresented itself to banks as an ordinary IT services company. Of the $84.2 million at stake, $79.11 million came from a Wells Fargo Securities account in Capstone's name on September 14. Another $2.06 million sat at JPMorgan Chase, $1.86 million in a separate Wells Fargo account, and just over $1.1 million was split across two USDT wallets.

EQIBank and Tether Response

EQIBank, a Dominica-licensed digital bank, directed how Capstone moved money, according to prosecutors. The bank warned that losing the funds, roughly 80% of everything it holds, could push it into liquidation. Tether confirmed EQIBank handled its USDT purchase and redemption transfers but said it had no knowledge of the alleged conduct by Capstone. A Tether spokesperson put total exposure at under 0.034% of group assets, which stood at $187.75 billion at the close of the second quarter.

Capstone Owners and Investigation

Capstone's owners, Kotaro Shimogori and Mary Jeanne Thompson, are named in the complaint, and the FBI executed a search warrant at a Sacramento residence. Their attorney said the company denies any wrongdoing and hopes to resolve the matter quickly, according to the Financial Times. Civil forfeiture allows the government to seize funds tied to an alleged crime without a criminal conviction against the money's owner.