Observed Signal · Sep 26, 2026 · Regulation · Source: t3n · Impact: 2/5 · Sentiment: Negative
US Seizes $84M in Tether-linked Payment Scheme
The US Department of Justice has seized approximately $84 million from bank accounts of Capstone, a Montana-based payment processor, for its involvement in a fraud network targeting elderly Americans. The scheme involved converting funds into Tether stablecoins and sending them abroad. Capstone, which operated without a money transmitter license due to Montana's lax regulations, allegedly deceived banks by posing as an IT company. Tether and Bitfinex, indirect clients of Capstone via the EQIBank in Dominica, denied any knowledge of illegal activities. The case highlights the ongoing difficulty for crypto firms to access traditional banking, forcing them to rely on opaque intermediaries. Legal actions are solely against Capstone, though Tether tokens worth $1.2 million were also seized.
The seizure highlights the ongoing regulatory challenges and operational risks for crypto companies in accessing banking infrastructure, which is relevant to the broader digital asset ecosystem but not directly to advertising technology.
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Key Takeaways & Evidence Grounding
- US DOJ seized ~$84 million from Capstone's accounts at Wells Fargo and JPMorgan Chase.
- Capstone laundered money for a scam targeting elderly US citizens, converting funds to Tether.
- Over $700 million flowed through Capstone accounts between March and December 2025.
- Tether and Bitfinex were indirect clients via EQIBank, but deny knowledge of illegal activities.
- Tether's attempt to open an account at DBS Bank failed due to association concerns.
Connected Companies & Entities
“The crypto company Tether, legally based in El Salvador, came into the focus of official investigations as an indirect customer via an offsh...”
“The investigators froze around $84 million on various business accounts at major US banks Wells Fargo and JPMorgan Chase.”
“The investigators froze around $84 million on various business accounts at major US banks Wells Fargo and JPMorgan Chase.”
“Only when the New York bank Citi noticed irregularities on the accounts did Capstone move around $65 million to Wells Fargo.”
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Binance suspends withdrawals after suspected multi-billion hack
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Crypto Fuels Surge in Human Trafficking Payments
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