Court Filings: Tether and Bitfinex Named in DOJ Forfeiture Case Involving Capstone
CIE News ·
Court filings have revealed that stablecoin issuer Tether and cryptocurrency exchange Bitfinex are the previously unnamed crypto firms connected to an ongoing U.S. federal civil forfeiture case. The legal action, brought forward by the Department of Justice, revolves around the federal seizure of approximately $84.2 million held by payment processor Capstone. According to the government's filings, federal authorities initiated the forfeiture proceedings under allegations that Capstone unlawfully operated an unlicensed money transmitting business. The unsealed court documents outline how Capstone allegedly masked cryptocurrency transactions by misclassifying them as routine corporate payments and standard business expenses. Through these mechanisms, Capstone allegedly routed funds on behalf of clients while evading federal registration and compliance requirements governing money transmitters. The newly unsealed court records specifically connect transaction activity involving Tether and Bitfinex to the Capstone payment network that is subject to the DOJ's asset forfeiture claim. The civil forfeiture proceedings remain active in federal court as prosecutors seek final forfeiture of the seized $84.2 million. Court filings detail the continuing review of the methods Capstone used to transfer digital asset-related capital through traditional banking channels. As the legal proceedings move forward, the court continues to assess the financial records and the precise nature of the transactions involving Capstone, Tether, and Bitfinex.