EQIBank, a digital bank licensed in Dominica, is engaged in a legal battle to recover approximately $89 million that US authorities seized from accounts tied to Capstone Ltd., a payment provider. The seized funds represent roughly 80% of the bank's total monetary holdings — a proportion so significant that the institution has publicly warned it could face liquidation if the money is not 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 matter by filing a forfeiture complaint seeking to permanently claim roughly $84.2 million associated with Capstone Ltd. A motion for return of property is the standard vehicle for a third party claiming ownership of seized assets to seek their release, while a forfeiture complaint opens a civil judicial action in which the government must establish in court its basis for taking permanent title to the funds.

A Seizure That Could End the Bank

According to the forfeiture complaint, the seizures targeted accounts held at major US financial institutions, including Wells Fargo and JPMorgan Chase. The funds were moving through these banks as part of Capstone's payment processing operations, and US authorities moved to freeze and seize them.

EQIBank responded on September 9 with what amounted to a survival warning. The loss of 80% of its monetary holdings is not something the bank can absorb, 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.

Multiple Legal Fronts

The Capstone seizure is not EQIBank's only courtroom challenge. The bank has also been contending with US securities fraud allegations filed in February 2026, months before the asset seizure opened a second front in its legal battles.

At the center of the case is the relationship between EQIBank and Capstone Ltd. 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 was swept up in the process. 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 resolve.

Implications for Offshore Digital Banking

The case highlights a growing tension in the financial system: offshore banks that touch US dollar flows are, by definition, subject to US jurisdiction. The reach follows from the structure of dollar payments themselves — denominated in US dollars ultimately settle within the US banking system, placing funds held at US institutions under American legal process no matter where the account holder is licensed. If money passes through Wells Fargo or JPMorgan Chase at any point in the transaction chain, US prosecutors can reach it. For digital banks serving clients across borders, that means the choice of where to hold dollar balances is also a choice about which legal system governs them.

As of mid-to-late September, no resolution had been reported. Proceedings in the Eastern District of California remain active, with EQIBank's motion for return of property 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 that 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. A ruling on EQIBank's motion for return of property will be the first major procedural checkpoint to watch.