A U.S. court action targeting EQIBank, a Dominica-licensed digital bank, resulted in the seizure of approximately $89 million in assets, representing about 80 percent of the lender's monetary holdings. The seizure, tied to allegations of misrepresentation by payment processor Capstone, could compel EQIBank into liquidation. Tether, the issuer of USDT, stated its assets held at EQIBank constitute less than 0.034 percent of its total assets, valued at roughly $64 million based on its reported $187.75 billion in group assets. The company emphasized it had no knowledge of the conduct by Capstone alleged by the Department of Justice. EQIBank previously provided banking services to Tether, handling wire transfers linked to USDT transactions. While the seizure underscores counterparty risks within the banking network supporting stablecoin operations, Tether indicated no immediate threat to USDT's reserves or dollar peg. The situation reflects broader vulnerabilities in the infrastructure underpinning stablecoin issuance, particularly as regulatory scrutiny intensifies.