EQIBank, a Dominica-licensed bank that says US seizures took roughly 80% of its financial assets, holds some of Tether‘s money, the stablecoin issuer said.

A Tether spokesperson put the company’s holdings at EQIBank at “less than 0.034% of the assets of the group” in an emailed statement, without naming a dollar figure. The Information first reported the exposure on Sept. 24. Measured against the $187.75 billion in total assets in Tether’s second-quarter reserves report, that would be less than about $63.8 million.

The Capstone Accounts

EQIBank says it kept funds with Capstone Ltd., a US payments company that held the money in its own name at Wells Fargo, JPMorgan Chase and other banks. According to the bank’s motion to recover the money, it began learning around April 2 that the funds had been frozen, and formal seizure warrants followed around June 1. In June, its lawyers wrote that the government’s allegations, at least initially, appeared to focus on representations Capstone may have made to Wells Fargo and other banks.

“Tether had no knowledge of the conduct by Capstone alleged by the Department of Justice,” the spokesperson said in the same statement.

EQIBank co-founder Christopher Burke said in a sworn declaration filed in June that the seized money made up “roughly 80%” of the bank’s financial assets and that the bank “cannot operate much longer” without some of it. Burke said Dominica’s Financial Services Unit placed EQIBank under enhanced supervision on June 5, a move he called a “preliminary step for the regulator to prepare to take over and liquidate the Bank” if it cannot serve its depositors.

Judge Dale A. Drozd of the Eastern District of California turned down EQIBank’s request on July 16. The ruling was procedural: once prosecutors had filed a civil forfeiture case over the Capstone accounts the day before, the court said it lacked equitable jurisdiction.

What Prosecutors Want to Keep

The forfeiture case covers about $83 million held in Capstone’s name at Wells Fargo and JPMorgan Chase, plus about 1.18 million USDT from two Tron addresses, according to a Sept. 14 court order. Together that comes to about $84.2 million.

Tether’s excess reserves stood at $4.11 billion at the end of June, about half the $8.23 billion it held three months earlier, a drop Unchained covered in August.

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