Tether and Bitfinex tied to $84.2M asset freeze in US forfeiture case

A federal forfeiture case out of California has turned into one of the more unusual crypto legal stories of the year, after people familiar with the matter told the Financial Times that Tether and Bitfinex are the crypto firms sitting behind a payments company called Capstone Ltd. The disclosure adds new weight to what had looked, on paper, like a routine asset seizure. It now reads as a Tether Bitfinex asset freeze case with tens of millions of dollars, a Dominica-based digital bank, and a fraud scheme all tangled together.

Key takeaways

• US federal prosecutors froze about $84.2 million tied to Capstone Ltd, alleging the firm moved money without a license.
• Capstone’s Wells Fargo account disbursed $337 million between March and December 2025, with roughly two-thirds sent to recipients mostly outside the US.
• People familiar with the matter say Tether and Bitfinex are the two unnamed crypto firms referenced in the forfeiture complaint.
• EQIBank says 80% of its monetary assets, held through Capstone, were frozen, and a US judge has already rejected its bid to get the money back.
• The case also links Capstone to a scam involving fraudsters impersonating FBI agents who pressured victims into payments converted to USDT.

US prosecutors freeze $84.2 million tied to Capstone in a crypto forfeiture case

Federal prosecutors in California froze roughly $84.2 million in Capstone’s name, arguing the payments group moved money without holding the proper license. The civil forfeiture complaint was filed July 15 in the Eastern District of California, and it does not name any company directly. Instead, it refers only to a crypto company, an affiliated exchange, and a bank based in Dominica — language that people familiar with the matter say points to Tether, Bitfinex, and EQIBank.

Wells Fargo account and the asset breakdown

Court records lay out exactly what was seized, and the numbers are specific. The single largest chunk, $79.11 million, sat in a Wells Fargo Securities account. Beyond that, prosecutors seized $2.06 million at JPMorgan Chase and $1.86 million at Wells Fargo Bank, plus about 1.18 million USDT spread across two wallets. Altogether, the frozen property adds up to five distinct pieces tied back to Capstone’s operations.

Money flow to recipients mostly outside the US

According to prosecutors, between March and December 2025, $337 million flowed out of Capstone’s Wells Fargo business account, excluding any Treasury purchases. According to the complaint, nearly two-thirds of that money went to hundreds of recipients located mostly outside the United States, acting on behalf of the two crypto firms now identified as Tether and Bitfinex. That geographic spread is one of the details that turned a local forfeiture filing into an international story.

Unlicensed money transmission and a fraud scheme tied to the case

Beyond the licensing allegation, prosecutors describe how Capstone presented itself and where it was based — details that shaped how the money moved for months before anyone noticed.

An IT company on paper, incorporated in Montana

Prosecutors allege Capstone presented itself to banks as an IT services company rather than a money transmitter. The firm was incorporated in Montana, notably the only US state that does not require a license for money transmitters — a structural detail the complaint treats as central to how Capstone was able to move funds for as long as it did.

A scam involving fake FBI agents and USDT conversions

The complaint also ties Capstone to a separate fraud scheme in which scammers posed as FBI agents and pressured elderly victims into making payments. Those payments were reportedly converted into USDT within roughly a day of being received. One account connected to that scheme held just over $2 million. Nothing in the complaint suggests Tether, Bitfinex, or EQIBank had knowledge of that scam. Capstone denies any wrongdoing and, through its lawyer, said it plans to file a motion to dismiss the case.

Tether and Bitfinex identified as the crypto firms behind Capstone

According to people familiar with the matter, Tether and Bitfinex reached Capstone through EQIBank, a digital bank licensed in Dominica. Both companies say they are simply clients of EQIBank, that they had no knowledge of the conduct alleged against Capstone, and that their exposure through the bank is limited. A Tether spokesperson put the company’s exposure at “less than 0.034% of the assets of the group.”

EQIBank says the freeze wiped out 80% of its monetary assets

For EQIBank, the fallout has been severe. A court motion filed June 29 states that the bank learned on April 2 that roughly 80% of its monetary assets, which were held through Capstone, had been frozen. Bank officials reportedly spent roughly three hours on April 16 on a call with US Justice Department lawyers, without any US counsel present. Following the seizure, Dominica’s financial regulator placed EQIBank under enhanced supervision and warned that further action, including potential liquidation, remained on the table, the motion said.

Judge Dale A. Drozd denies EQIBank’s bid to recover the money

EQIBank tried to get the frozen funds released through the courts, but on July 16, District Judge Dale A. Drozd turned down that request. The ruling leaves the bank’s assets tied up while the broader forfeiture case against Capstone continues to play out, and it underscores just how difficult it can be for a foreign-licensed institution to challenge a US asset freeze once prosecutors have moved.

What makes this case stand out isn’t just the dollar figures — it’s how far the freeze reaches beyond the company actually named in the complaint. Capstone is the defendant on paper, but the practical damage has landed hardest on EQIBank, a regulated bank thousands of miles away that says it had no knowledge of any wrongdoing. That dynamic is likely to draw attention from other institutions that route funds through third-party payment processors, since it shows how a single unlicensed intermediary can put a much larger share of a bank’s balance sheet at risk than anyone anticipated.

For Tether and Bitfinex, the reputational stakes are different but still real. Neither company has been named in the complaint, and both maintain they knew nothing about Capstone’s alleged conduct. Still, being publicly linked — even as clients rather than defendants — to a forfeiture case involving unlicensed money transmission and an elder-fraud scheme is the kind of headline that regulators and counterparties tend to remember, regardless of how the underlying case against Capstone is eventually resolved.

FAQ

Who are the crypto firms behind Capstone?

The crypto firms behind Capstone are Tether and Bitfinex, although they are not named in the US forfeiture complaint.

What assets have been frozen in relation to Capstone?

US prosecutors froze about $84.2 million, including $79.11 million in a Wells Fargo Securities account, funds at JPMorgan Chase and Wells Fargo Bank, plus 1.18 million USDT across two wallets.

Why were Capstone’s accounts frozen by US authorities?

Prosecutors allege Capstone moved money without a license and is linked to a fraud scheme involving impersonation of FBI agents who pressured victims into payments converted to USDT.

What has been the legal outcome regarding the frozen assets?

District Judge Dale A. Drozd denied EQIBank’s attempt to recover the frozen money on July 16.

Article produced with the assistance of artificial intelligence and reviewed by the editorial team.