US seizes Capstone’s bank accounts over alleged illegal transfers for Tether and Bitfinex

Federal prosecutors have moved to seize roughly $84.2 million in assets from Capstone Ltd., alleging the firm served as a conduit for illegal banking transfers benefiting Tether and Bitfinex. The civil forfeiture complaint, filed on July 15, targets accounts held at Wells Fargo and JPMorgan, with the bulk of the seized funds, approximately $79.11 million, sitting in a Wells Fargo Securities account. The government’s case centers on a relatively obscure Caribbean institution called EQIBank, which prosecutors say directed Capstone to move hundreds of millions of dollars on behalf of the two crypto companies. What prosecutors are alleging According to the complaint, Capstone functioned as an intermediary that allowed Tether and Bitfinex to access US banking rails they might not have been able to use directly. EQIBank allegedly orchestrated the arrangement, with Capstone executing transfers through its accounts at two of America’s largest banks. A federal district judge in California has already denied EQIBank’s motion to return the seized property after prosecutors filed their formal complaint. EQIBank claims the frozen assets represent approximately 80% of its total monetary holdings...