Tether has funds stuck at offshore banking partner EQIBank, which faces liquidation risk after U.S. asset seizures; Tether says exposure is under 0.034% of total assets.
DeFi & Yields ·
Tether has funds trapped at offshore banking partner EQIBank following U.S. asset seizures at the institution, which now faces liquidation risk. The Information reported the development, noting that Tether characterized its exposure as limited, with holdings at EQIBank representing less than 0.034% of total assets.
EQIBank's regulatory troubles stem from enforcement actions by U.S. authorities targeting assets held at the bank. The seized funds have created a situation where Tether cannot immediately access its deposited capital, though the company has framed the potential loss as immaterial relative to its broader reserve base.
It remains unclear how long Tether's funds may remain inaccessible, whether the bank's liquidation is certain, or what recovery prospects exist for stablecoin reserves held there. The full scope of any operational or financial consequences for Tether has not been detailed.