EQIBank Filed Motion to Recover Seized Funds

The Dominica-based bank is fighting to reclaim $89 million in assets seized by U.S. authorities this summer.

Updated on Sept. 24, 2026 in Financial Crime

EQIBank Filed Motion to Recover Seized Funds

Live Poll

Should offshore banks be subject to the jurisdiction of countries where their funds are processed?

EQIBank filed a motion in U.S. District Court on June 29, 2026, seeking to recover $89 million in funds seized by federal authorities. The bank warned in September that it faces potential liquidation if the seized assets are not returned.

Why it matters

The seizure affects 80% of the digital bank's total monetary holdings, threatening the institution's ongoing viability. The funds were caught in a broader government forfeiture action targeting the payment processing operations of Capstone Ltd.

EQIBank filed its motion for the return of property on June 29, followed by a federal forfeiture complaint on July 15. The assets were held within accounts at Wells Fargo and JPMorgan Chase.

The players

EQIBank

A digital bank licensed in Dominica that is currently attempting to recover assets seized by U.S. authorities.

Capstone Ltd

A payment processing entity whose operations became the focus of a U.S. federal forfeiture complaint.

The details

U.S. prosecutors targeted the funds as part of a legal action against Capstone Ltd, whose payment operations utilized accounts at Wells Fargo and JPMorgan Chase. EQIBank, which is licensed in Dominica, also faces separate securities fraud allegations filed in February 2026.

February 2026: Securities fraud allegations were filed against EQIBank.
June 29, 2026: EQIBank filed a motion for return of property in U.S. court.
July 15, 2026: U.S. prosecutors filed a forfeiture complaint regarding the funds.
September 9, 2026: EQIBank issued a warning regarding potential liquidation.

Legal Context

This case follows the pattern of legal conflict established by the 2026 U.S. securities fraud allegations against EQIBank. The litigation highlights the risks international digital institutions face when their payment flows intersect with U.S. enforcement actions.

The potential liquidation of a digital bank impacts account holders and businesses relying on the institution for payment processing. Legal proceedings in the Eastern District of California will determine whether these significant assets remain frozen or are returned to the bank.

The takeaway

Entities operating across borders must navigate complex U.S. forfeiture regulations that can seize significant operating capital. Bank customers should remain aware of how third-party payment processors can influence the legal status of their own funds.