# DOJ seizes Tether's bank accounts in crypto fraud probe

> The stablecoin giant's accounts were frozen after an unlicensed payment processor allegedly ran a massive scam.
- Title: DOJ seizes Tether's bank accounts in crypto fraud probe
- Summary: The stablecoin giant's accounts were frozen after an unlicensed payment processor allegedly ran a massive scam. Tether, despite being crypto's most trusted…
- Keywords: tether, stablecoin, department of justice, fbi probe, capstone, bitfinex, ifinex, eqibank, crypto fraud, bank account seizure, development bank of singapore, science
- Source: Futurism — https://futurism.com/future-society/stablecoin-tether-doj-seized
- Author: Joe Wilkins
- Published: 2026-09-25T21:34:41+00:00
- Read time: 1 min
- Topics: tether, stablecoin, department of justice, fbi probe, capstone, bitfinex, ifinex, eqibank, crypto fraud, bank account seizure, development bank of singapore, science
## DOJ seizes Tether's accounts
The US Department of Justice has frozen millions of dollars from bank accounts and crypto wallets linked to Tether Limited, the issuer of the stablecoin Tether.
## What is Tether?
Tether is a stablecoin, a digital currency designed to maintain a stable value tied to the US dollar exchange rate. It's considered crypto's gold standard.
## Unlicensed processor ran scam
An unlicensed payment processor called Capstone allegedly posed as an IT firm to banks like Wells Fargo and JPMorgan Chase while running a fraud scheme.
## Capstone scammed elderly victims
Capstone employees allegedly impersonated FBI agents to defraud elderly people, then converted their stolen money into cryptocurrency.
## Tether claims it's a victim
Tether says it was merely a customer of EQIBank, an offshore firm that handled its money through Capstone, and had no knowledge of the fraud.

> no knowledge of the fraudulent conduct by Capstone alleged by the DoJ
## Tether's Singapore bank deal failed
Tether offered to invest in EQIBank if it could secure a bank account with Singapore's Development Bank, but the deal fell through before the FBI investigation exposed everything.

> DBS has never had appetite for association with illicit funds or inappropriate dealings
## Key takeaway

Tether, despite being crypto's most trusted stablecoin, remains entangled with sketchy financial infrastructure and fraudulent intermediaries.