A portion of Tether's funds is frozen at a bank facing potential liquidation, as the US Department of Justice seeks to confiscate about $84 million from payments company Capstone, seized from accounts at Wells Fargo and JPMorgan. The seizure took place in the summer, but Tether's connection to the case has only now come to light.

Capstone processed payments for EQIBank clients, including Tether

Capstone handled payments for EQIBank clients, one of which was Tether. Hundreds of millions of dollars linked to Tether and Bitfinex moved through this infrastructure.

Tether's share of funds at EQIBank is less than 0.034% of company assets

Tether stated that its funds held at EQIBank represent less than 0.034% of the company's total assets.