EQIBank fights to recover $89M seized from US payment provider accounts

EQIBank, a digital bank licensed in Dominica, is locked in a legal battle to claw back approximately $89 million that US authorities seized from accounts tied to a payment provider called Capstone Ltd. The seized funds represent about 80% of the bank’s total monetary holdings, a figure so large that the institution has publicly warned it could face liquidation if the money isn’t returned.

The bank filed a motion for the return of its property on June 29 in the US District Court for the Eastern District of California. Two weeks later, on July 15, US prosecutors escalated the situation by filing a forfeiture complaint seeking to permanently claim roughly $84.2 million associated with Capstone Ltd.

A seizure that could kill the bank

The forfeiture complaint details seizures from accounts held at major US financial institutions, including Wells Fargo and JPMorgan Chase. The money was apparently flowing through these banks as part of Capstone’s payment processing operations, and US authorities moved to freeze and seize the funds.

EQIBank’s response came on September 9, when the institution issued what amounted to a survival warning. Losing 80% of your monetary holdings isn’t something most banks can shrug off, and EQIBank made clear that continued seizure of these assets could push it into liquidation proceedings.

Founded by Jason Blick and Christopher Burke, EQIBank has positioned itself as a bridge between traditional finance and the digital economy, offering multi-currency accounts and related digital banking services.

A pile of legal problems

The Capstone seizure isn’t EQIBank’s only courtroom headache. The bank has also been dealing with US securities fraud allegations that were filed back in February 2026, months before the asset seizure added a second front to its legal battles.

The relationship between EQIBank and Capstone Ltd. sits at the center of the case. Capstone operated as a US-based payment provider, and EQIBank apparently maintained significant funds in accounts connected to Capstone’s operations. When US authorities targeted Capstone, EQIBank’s money got swept up in the dragnet. Whether EQIBank was merely a banking partner caught in the crossfire or something more directly involved remains one of the key questions the court will need to sort out.

What this means for offshore digital banking

The case illustrates a growing tension in the financial system: offshore banks that touch US dollar flows are, by definition, subject to US jurisdiction. If money moves through Wells Fargo or JPMorgan Chase at any point in the transaction chain, US prosecutors can reach it.

As of mid-to-late September, no resolution has been reported. The court proceedings in the Eastern District of California are still active, and EQIBank’s motion for return of property remains pending alongside the government’s forfeiture complaint. The gap between the bank’s $89 million claim and the government’s $84.2 million forfeiture target suggests some portion of the seized funds may not be directly contested, though the overlap is substantial enough that the outcome will determine whether EQIBank continues to exist as a going concern.