Tether Faces Exposure Concerns Following EQIBank Liquidation Risk

Tether has confirmed that a portion of its funds is held at EQIBank, an offshore digital bank currently facing potential liquidation due to a U.S. asset seizure. Tether stated that this exposure represents less than 0.034% of its total assets, though it has not disclosed the specific dollar amount. The situation stems from U.S. authorities seizing approximately $89 million from accounts linked to payment processor Capstone Ltd, which held funds at major U.S. banks. While Tether maintains that its exposure is minimal, the incident has prompted questions regarding the concentration of its reserves in offshore institutions and its ability to withstand multiple simultaneous shocks.