Tether has described its exposure to a bank connected to an $84 million US seizure as "limited," after prosecutors alleged a payments business moved hundreds of millions of dollars at the bank's direction.
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Tether said its exposure to the bank at the center of the case was "limited," according to a Cointelegraph report published on Sept. 25, 2026. The statement followed US prosecutors' allegations involving a bank where the stablecoin issuer holds some assets. The reported statement did not specify a dollar figure for those holdings, leaving the size of the relationship undisclosed. The distinction matters because "limited" is a qualitative characterization rather than a quantified line in a reserve report.
Prosecutors alleged that a payments business illegally transferred hundreds of millions of dollars at the direction of EQIBank, the bank in question. The enforcement matter is linked to an $84 million US seizure, the figure cited in the original report. Tether's connection is that it holds some assets at that bank, rather than being the target of the allegations. The report does not describe accusations of wrongdoing against Tether itself.
Stablecoin issuers keep reserves that back tokens in circulation, and those reserves sit partly in bank accounts alongside cash equivalents and short-term government debt. USDT, issued by Tether, is the largest stablecoin by market capitalization, so the composition and accessibility of its reserves draw continuous attention from exchanges, traders and regulators. When a bank in that chain faces an enforcement action, practical questions arise about whether funds remain accessible, how quickly they could be repositioned, and how the holdings are described in reports. Tether publishes quarterly attestations prepared by an outside accounting firm, which is the main routine window outsiders have into its holdings.
This is not the first time Tether's banking relationships have drawn scrutiny. In 2021 the company settled with US regulators over reserve-related claims, paying $41 million to the CFTC and $18.5 million to the New York Attorney General. Those matters concerned disclosure rather than the backing of the token itself, and Tether has since increased the frequency and detail of its reserve reporting. Each new enforcement case involving a banking counterparty therefore tends to revive questions about how much visibility outsiders have into where issuer funds are held, with attention centered on a single relationship rather than the broader reserve structure.
Tether described its exposure as "limited," according to a report published on Sept. 25, 2026, following allegations tied to an $84 million US seizure. The reported statement did not give a dollar amount, so the exact size of the relationship has not been made public by the company.
Prosecutors alleged that a payments business illegally transferred hundreds of millions of dollars at the direction of EQIBank. Tether holds some assets at that bank, which is why the stablecoin issuer appears in coverage of the enforcement action. The report does not describe allegations of wrongdoing by Tether.
Stablecoin reserves are held partly in bank accounts, alongside cash equivalents and short-term government debt that back the tokens in circulation. If a bank in that chain becomes subject to enforcement, questions can arise about access to those funds and about how the holdings are reported. That is why the banking counterparties of large issuers attract attention even when the issuer itself is not the target.
Tether's Statement
What Prosecutors Alleged
Why a Bank Relationship Matters for a Stablecoin Issuer
Familiar Ground for Tether
Regulatory Backdrop
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Enforcement actions against banks that serve crypto businesses have become more common as regulators in the US, EU and elsewhere tighten rules covering digital assets. The EU's Markets in Crypto-Assets framework, for example, imposes reserve and disclosure requirements on stablecoin issuers operating in the bloc, changing what firms must publish. For issuers, the practical consequence is that counterparty relationships are increasingly treated as a disclosure issue rather than a purely operational one. How this case proceeds will depend on prosecutors and the courts, and no outcome has been determined at this stage. Based on public news sources.
Yes. In 2021 Tether settled with US regulators over reserve-related claims, paying $41 million to the CFTC and $18.5 million to the New York Attorney General. Those matters concerned disclosure rather than the backing of the token, and Tether has since increased the detail and frequency of its reserve reporting. New cases involving banking partners tend to renew questions about how much visibility outsiders have into issuer holdings.
The matter rests with prosecutors and the courts, and no outcome has been determined so far. Tether has characterized its exposure as limited but has not published a figure for assets held at the bank. Additional details would most likely surface through court filings or company disclosures rather than through public statements alone.
