Authorities Freeze Assets of Montana Firm Connected to Tether

In an illustration dated September 10, 2025, cryptocurrencies are visually represented. REUTERS/Dado Ruvic/Illustration/File Photo. NEW YORK, Sept 25 (Reuters) - U.S. prosecutors in California have confiscated millions from bank accounts and cryptocurrency wallets associated with a Montana-based payments company allegedly linked to Tether. According to federal prosecutors in a civil forfeiture filing, the owners of Capstone, which operated as a money services business, misrepresented their operations as an information technology firm to banks like Wells Fargo and JPMorgan Chase when setting up accounts. Capstone, registered in Montana, facilitated various payments for two cryptocurrency companies under an agreement with a Dominica-based bank, as disclosed by prosecutors in a July filing subsequently reported by The Information. A lawyer representing Capstone asserted that the firm refutes the allegations, highlighting significant flaws in the government's claims. Brian Klein, a partner at Cooley law firm, stated, 'Capstone has cooperated with the government’s investigation and aims to resolve this matter swiftly.' Tether acknowledged that it was a client of the bank but claimed it had no knowledge of Capstone's alleged misconduct. Prosecutors allege that Capstone participated in a fraudulent scheme, impersonating FBI agents to deceive victims and subsequently converting the stolen funds into cryptocurrency. A spokesperson for Tether clarified, 'Tether was unaware of the actions attributed to Capstone by the Department of Justice,' emphasizing that its assets at the bank were limited. The Justice Department's court documents did not implicate any wrongdoing by the other financial institutions involved. They have seized nearly $81 million from Capstone's accounts at Wells Fargo and $2 million from a JPMorgan account, according to court filings. Additionally, approximately $1.2 million worth of Tether's stablecoin was also confiscated. Representatives from Wells Fargo and JPMorgan opted not to comment. This report updates the September 25 story with responses from Capstone's lawyer in paragraphs 4-5. Reporting by Chris Prentice; Editing by Daniel Wallis. Our Standards: The Thomson Reuters Trust Principles.