Tether Says Some Funds Are Exposed to EQI Bank Liquidation Risk, Under 0.034% of Assets
Summary
- Tether said some of its funds are tied up in connection with EQI Bank liquidation risk.
- It said the assets account for less than 0.034% of total assets, limiting the overall impact on its reserves.
- Tether said the amount it can recover may vary depending on EQI Bank's liquidation process.
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Some of Tether's funds are tied up at offshore lender EQI Bank, which is facing liquidation risk, The Information reported. Tether said the exposure represents an extremely small share of its total assets.
The Information reported on September 24 that EQI Bank faced liquidation risk after U.S. authorities seized assets linked to the bank. As a result, some of the funds Tether held at EQI Bank are currently subject to recovery restrictions.
Tether said the assets held at EQI Bank account for less than 0.034% of its total assets. It added that the matter would have a limited impact on its reserves overall.
Still, how much Tether can recover if EQI Bank enters liquidation will depend on the course of the proceedings.
YM Lee
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