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 m...