US Seizes $84M Tied to Tether and Bitfinex in Major Banking Crackdown

The U.S. Department of Justice has seized about $84.2 million from bank accounts linked to Capstone, a payment firm that handled hundreds of millions of dollars for Tether and Bitfinex

But the seizure goes beyond the stablecoin giant, as EQIBank says around 80% of its funds are frozen and warns that its operations could collapse.

How Did Capstone Become a $700M Crypto Banking Link?

Federal prosecutors filed a civil forfeiture complaint against Capstone’s accounts on July 15, 2026, in the U.S. District Court for the Eastern District of California.

The case centers on Capstone Limited, a Sacramento-based company run by Kotaro Shimogori and Mary Jeanne Thompson. Prosecutors say Capstone served as a link between EQIBank and the U.S. banking system.

EQIBank, a digital bank based in Dominica, did not have a direct account with the U.S. Federal Reserve. Because of this, it relied on Capstone to help process U.S. dollar transfers.

Prosecutors allege that Capstone told U.S. banks it was an IT services company. However, they say the company was actually handling international money transfers without the required license.

The amount of money moving through Capstone was significant. 

Court documents show that more than $700 million passed through one Capstone account over several months. About $337 million was then sent to hundreds of people and companies, with nearly two-thirds of that money reportedly processed for Tether and Bitfinex.

What Assets Were Seized in the Case?

The DOJ’s civil forfeiture case covers money held in several bank accounts and digital wallets linked to Capstone. Federal authorities seized about $84.2 million in total, including funds held at major U.S. banks and USDT stored in two digital wallets.

The seized assets included:

• $79.1 million from a Capstone account at Wells Fargo Securities.
• $1.86 million from a Capstone account at Wells Fargo Bank.
• $2.06 million from an operational account at JPMorgan Chase.
• 1.18 million USDT from two digital wallets linked to the case.

The DOJ also alleges that a cyber-fraud group used Capstone’s accounts to move stolen money. The group reportedly posed as FBI agents and converted some of the stolen funds into USDT.

Response From EQIBank, Capstone, Tether, and Bitfinex

Following the seizure EQIBank quickly filed an emergency motion in a California court to recover the frozen assets. The Dominica-based bank says the freeze has blocked around 80% of its total funds, putting its operations under serious pressure.

EQIBank warned that it could face bankruptcy and collapse if the funds remain frozen. 

The bank also says it was an “innocent owner” and that Capstone misled it about its registration and operations.

Meanwhile, Capstone has denied criminal wrongdoing. Its lawyer said the company plans to challenge the government’s civil forfeiture complaint.

Tether and Bitfinex said they were unaware of Capstone’s alleged banking misrepresentations or money laundering activity.