Federal Prosecutors Seek $84.2 Million Forfeiture From Tether-Connected Payments Processor

US prosecutors have filed a civil forfeiture complaint seeking to seize $84.2 million connected to Capstone Ltd., a Montana-based payments firm accused of processing Tether transfers without the required money-transmitter licenses.

The complaint, filed July 15 in the Eastern District of California before Judge Dale A. Drozd, alleges Capstone posed as an ordinary IT services company while operating as an unlicensed money transmitter in at least six states. The bulk of the funds—$79.11 million—sat in a Wells Fargo Securities account, with smaller amounts held at JPMorgan Chase, a second Wells Fargo account, and two USDT wallets.

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 told the Financial Times that the company “denies any wrongdoing” and hopes to “resolve this matter quickly.”

Behind Capstone sits EQIBank, a Dominica-licensed digital bank prosecutors say directed the payment flows. EQIBank has warned that losing those funds—roughly 80% of its holdings—could push it into liquidation.

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Tether confirmed that EQIBank handled its USDT purchase and redemption transfers but insisted it had “no knowledge of the conduct by Capstone alleged by the Department of Justice,” in a statement provided to Reuters. A spokesperson put total exposure at under 0.034% of group assets—roughly nothing against the $187.75 billion in assets Tether reported at the close of the second quarter.

This is not the first time Tether and its sister company Bitfinex have faced prosecutors over how they move money. In 2021, both companies settled with the New York Attorney General after admitting USDT was not always backed dollar-for-dollar as advertised, paying an $18.5 million fine and agreeing to stop trading in the state.

Capstone and EQIBank have already filed an innocent-owner defense over the seized funds. Under Supplemental Rule G, which governs these forfeiture cases, any claimant has 21 days to answer the government’s complaint once a formal claim is filed with the court.

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