DOJ seizes millions from Tether amid alleged Capstone fraud probe
The US Department of Justice just seized millions from Tether's bank accounts and crypto wallets as part of a massive FBI probe.
The case centers on Capstone, a shady payment processor accused of tricking banks like Wells Fargo by misrepresenting itself as an information technology firm and people affiliated with Capstone allegedly misrepresenting themselves as FBI agents in order to scam the elderly.
Tether and Bitfinex deny knowledge
Tether and Bitfinex, a cryptocurrency exchange owned by Tether's parent company, iFinex, say they had no idea about Capstone's illegal moves, clarifying they were simply customers of EQIBank, through which their money flowed.
The story also points out how tough it still is for crypto companies to work with regular banks.
Tether even failed to open an account with Singapore's DBS, showing there are still big trust issues in the world of digital money.