U.S. Authorities Freeze Accounts of Payment Company Linked to Tether and Bitfinex

TechFlow reported on September 26 that, according to Cointelegraph, the U.S. Department of Justice froze the accounts of Montana-based payment company Capstone in a civil forfeiture complaint involving approximately $84 million. Prosecutors alleged that the unlicensed firm illicitly transferred hundreds of millions of dollars in funds and processed payments on behalf of hundreds of entities and individuals.

The enforcement action brought stablecoin giant Tether and exchange Bitfinex into the spotlight. The complaint alleges that Capstone processed funds under the direction of EQIBank, which holds some assets for Tether. Tether told Cointelegraph it is a client of EQIBank but stressed that the funds held at the bank represent only 0.034% of the group’s total assets, adding that it was “unaware” of the institution’s alleged illegal and non-compliant activities. According to the Financial Times, Capstone was also accused of handling settlements on behalf of Bitfinex.