{"investigation":{"slug":"eqibank","entity_name":"EQIBank","trust_score":18,"severity_base":null,"score_modifier":0,"confidence":0.82,"status":"published","content_type":"investigation","summary":"EQIBank is a Dominica-licensed offshore digital bank founded in 2015 and launched in 2018, which has provided banking and payment-processing services to crypto firms including Tether and Bitfinex. In July 2026, U.S. federal prosecutors filed a civil forfeiture complaint in the Eastern District of California targeting approximately $84.2 million held by EQIBank's payment processor Capstone Ltd., a seizure the bank states represents roughly 80% of its monetary holdings. Dominica's Financial Services Unit placed EQIBank under enhanced supervisory oversight in June 2026, describing the measure as a preliminary step toward potential liquidation if the bank cannot serve its depositors.","sections":[{"content":"EQIBank Limited is a Dominica-incorporated offshore bank holding a full banking license under Dominica's Offshore Banking Act No. 8 of 1996, supervised by the country's Financial Services Unit (FSU). The bank was incorporated in 2015 and launched customer-facing services in October 2018. Its founding team, led by CEO Jason Blick (a qualified UK attorney and founder of Cayman Enterprise City) and co-founder Christopher Burke, was drawn from former staff at HSBC, Credit Suisse, Bank of New York, and UBS. EQIBank markets itself as a unified offshore banking platform offering multi-currency accounts, OTC cryptocurrency-to-fiat exchange, digital asset custody, USD/USDT escrow, lending secured by digital assets, and API-based fintech integrations. The bank does not hold a direct account with the U.S. Federal Reserve and has historically relied on third-party U.S.-based payment processors to clear U.S. dollar transactions. One such processor was Capstone Ltd. A 2018 launch press release referenced the Eastern Caribbean Central Bank (ECCB) as a regulator, but the wiki.private.law reference compendium notes that the ECCB has no statutory authority over offshore licensees in Dominica, and the reference was subsequently removed from EQIBank's official materials.","heading":"Overview and Background","sources":[{"url":"https://www.prnewswire.com/news-releases/eqibank-the-world-s-first-licensed-and-regulated-offshore-bank-for-national-currencies-crypto-and-digital-assets-has-launched-886322276.html","name":"EQIBank launch press release — PR Newswire","type":"news_article","credibility":2},{"url":"https://wiki.private.law/en/eqi-bank","name":"EQIBank: Dominica Offshore Bank & OTC Crypto Operations — wiki.private.law","type":"research","credibility":2},{"url":"https://www.retailbankerinternational.com/news/former-bankers-launch-new-lender-eqibank/","name":"Retail Banker International — Team of former bankers launch EQIBank","type":"news_article","credibility":2}],"severity":"medium"},{"content":"On July 15, 2026, U.S. federal prosecutors filed a civil forfeiture complaint in the U.S. District Court for the Eastern District of California, case 2:26-mc-00208, against approximately $84.2 million held in accounts belonging to Capstone Ltd., a Montana-registered payments firm run by Kotaro Shimogori and Mary Jeanne Thompson, with operations in Sacramento, California. The government alleges that Capstone operated as an unlicensed money transmitter in at least six U.S. states and misrepresented the nature of its business to correspondent banks — describing itself as a technology services company — while actually processing international money transfers on behalf of EQIBank and, according to reporting by the Financial Times, on behalf of Tether and Bitfinex. According to court filings, Capstone held EQIBank's U.S. dollar liquidity in its own name across accounts at Wells Fargo Securities ($79.11 million), a second Wells Fargo account ($1.86 million), and JPMorgan Chase ($2.06 million). An additional approximately $1.1 million in USDT was seized from two Tron blockchain addresses. The forfeiture complaint also alleges that Capstone's accounts were used by fraudsters impersonating FBI agents to convert stolen funds into stablecoins, though this allegation is directed at Capstone's infrastructure and not at EQIBank specifically. Capstone's attorney stated the firm denies any wrongdoing. EQIBank was not named as a defendant in the forfeiture complaint and has asserted it was deceived by Capstone regarding how its funds were held. EQIBank filed an emergency motion for return of property on June 29, 2026, before the forfeiture complaint was filed. On July 16, 2026, Judge Dale A. Drozd denied that motion on procedural grounds, finding the court lacked equitable jurisdiction after the formal forfeiture case was initiated. The case remained active as of late September 2026, with EQIBank contesting the forfeiture as an innocent owner.","heading":"Civil Forfeiture Action — Capstone Ltd. (July 2026)","sources":[{"url":"https://www.coindesk.com/policy/2026/09/25/tether-confirms-minimal-eqibank-exposure-following-usd89m-us-asset-seizure","name":"Tether downplays impact of US seizure at banking partner EQIBank — CoinDesk","type":"news_article","credibility":2},{"url":"https://dockets.justia.com/docket/california/caedce/2:2026mc00208/493780","name":"EQIBank Limited v. United States of America — Justia Docket 2:2026mc00208","type":"court_filing","credibility":1},{"url":"https://en.spaziocrypto.com/regulation/capstone-eqibank-84-million-seizure-tether-not-charged/","name":"$84M Seized Near Tether: What the Court Filing Says — Spazio Crypto","type":"news_article","credibility":2},{"url":"https://decrypt.co/379380/us-prosecutors-84-million-bank-tether-and-bitfinex","name":"US Prosecutors Want $84.2 Million From a Bank Tied to Tether — Decrypt","type":"news_article","credibility":2},{"url":"https://unchainedcrypto.com/tether-says-less-than-0-034-of-its-assets-sit-at-eqibank-an-offshore-bank-hit-by-us-seizures/","name":"Tether Says Less Than 0.034% of Its Assets Sit at EQIBank — Unchained Crypto","type":"news_article","credibility":2},{"url":"https://www.pymnts.com/legal/2026/justice-department-seizes-84-million-from-payments-firm-capstone/","name":"Justice Department Seizes $84 Million From Payments Firm Capstone — PYMNTS","type":"news_article","credibility":2}],"severity":"critical"},{"content":"On June 5, 2026, Dominica's Financial Services Unit (FSU) placed EQIBank under enhanced supervisory oversight. According to a sworn declaration filed by EQIBank co-founder Christopher Burke, the FSU characterized this measure as a 'preliminary step for the regulator to prepare to take over and liquidate the Bank' if it is unable to serve its depositors. Burke's declaration stated the seized funds represented 'roughly 80%' of EQIBank's financial assets and that the bank 'cannot operate much longer' without some of the funds being returned. On September 9, 2026, EQIBank issued a public warning that continued loss of the frozen funds could force it into liquidation. As of September 26, 2026, the bank had not entered liquidation and was actively contesting the U.S. forfeiture proceedings.","heading":"Regulatory Action — Dominica Financial Services Unit","sources":[{"url":"https://unchainedcrypto.com/tether-says-less-than-0-034-of-its-assets-sit-at-eqibank-an-offshore-bank-hit-by-us-seizures/","name":"Tether Says Less Than 0.034% of Its Assets Sit at EQIBank — Unchained Crypto","type":"news_article","credibility":2},{"url":"https://www.libertymundo.com/eqibank-seizure/","name":"EQIBank Seizure: $84M US Freeze Puts Offshore Bank At Collapse Risk — Liberty Mundo","type":"news_article","credibility":3},{"url":"https://startupfortune.com/us-seizure-of-89-million-pushes-tethers-banking-partner-eqibank-toward-collapse/","name":"US seizure of $89 million pushes Tether's banking partner EQIBank toward collapse — Startup Fortune","type":"news_article","credibility":3}],"severity":"critical"},{"content":"EQIBank provided banking services to Tether Limited, the issuer of the USDT stablecoin, including processing U.S. dollar wire transfers linked to USDT issuance and redemption. The Financial Times reported, citing unnamed sources, that Tether and Bitfinex were among the principal clients whose transactions flowed through Capstone's accounts. Tether confirmed on September 25, 2026, that it held funds at EQIBank and that those funds were affected by the seizure, but characterized its total exposure as less than 0.034% of Tether Group's consolidated assets — estimated by analysts at approximately $63.8 million based on Tether's reported $187.75 billion in assets at the time. Tether stated it had 'no knowledge of the conduct by Capstone alleged by the Department of Justice.' Neither Tether nor Bitfinex was named as a defendant in the forfeiture complaint. Separately, Tether and Bitfinex had previously settled with the New York Attorney General's Office in February 2021, paying an $18.5 million fine over claims related to the accuracy of statements about USDT's backing; that matter is unrelated to the Capstone action.","heading":"Relationship with Tether and Bitfinex","sources":[{"url":"https://www.cryptotimes.io/2026/09/25/tether-confirms-funds-stuck-at-eqibank-after-u-s-seizes-84-2m-tied-to-capstone/","name":"Tether Confirms Funds Stuck at EQIBank After U.S. Seizes $84.2M Tied to Capstone — CryptoTimes","type":"news_article","credibility":2},{"url":"https://unusualwhales.com/news/us-seizes-capstone-bank-accounts-tether-bitfinex","name":"US Seizes $84M From Tether-Linked Capstone Accounts — Unusual Whales","type":"news_article","credibility":2},{"url":"https://www.cryptopolitan.com/tether-bitfinex-capstone-accounts-frozen/","name":"Tether and Bitfinex named as the crypto firms behind Capstone — CryptoPolitan","type":"news_article","credibility":2}],"severity":"high"},{"content":"Separately from the DOJ forfeiture action, EQIBank Limited and three Cayman Islands-incorporated affiliates — EQICorp Limited, EQITech (SEZC) Limited, and EQITrade Limited — face a civil lawsuit filed in U.S. federal court by Beyond Enterprises LLC, styled Beyond Enterprises LLC v. EQIBank Limited et al., docket 2:25-cv-12208 (Central District of California). The complaint alleges breach of contract and securities fraud. Reporting by OffshoreAlert, which tracks offshore financial institutions, described the bank as a Dominica 'digital bank' facing U.S. securities fraud claims. The case was filed in or around February 2026. The Bank and its affiliates deny the allegations. As of the date of this investigation, no court ruling on the merits of the Beyond Enterprises claims has been publicly reported.","heading":"Securities Fraud Civil Lawsuit (February 2026)","sources":[{"url":"https://www.offshorealert.com/dominica-digital-bank-eqibank-sued-for-securities-fraud-in-u-s/","name":"Dominica 'digital bank' EQIBank sued for 'securities fraud' — OffshoreAlert","type":"news_article","credibility":2},{"url":"https://www.law.com/radar/card/pm-62044852-beyond-enterprises-llc-v-eqibank-limited/","name":"Beyond Enterprises LLC v. EQIBank Limited — Law.com Radar","type":"court_filing","credibility":1}],"severity":"high"},{"content":"Independent analysis of EQIBank's public disclosures identifies several structural transparency gaps that are relevant to depositor due diligence. The bank does not publicly disclose its correspondent banking relationships, which is notable given that its entire U.S. dollar clearing infrastructure was concentrated in a single third-party processor (Capstone). EQIBank is not listed in Dominica's Virtual Asset Business register despite offering OTC crypto-to-fiat exchange and digital asset custody services. The bank publishes no official fee schedule for OTC transactions; commissions are negotiated individually. Customer account agreements contain a contractual right of set-off and general lien in favour of the bank over customer funds. EQIBank does not disclose minimum account balances, acceptable customer nationalities, or custody contract terms. These omissions are consistent with the opacity typical of small offshore banking jurisdictions but are elevated risk factors given EQIBank's active crypto-sector client base.","heading":"Structural and Transparency Concerns","sources":[{"url":"https://wiki.private.law/en/eqi-bank","name":"EQIBank: Dominica Offshore Bank & OTC Crypto Operations — wiki.private.law","type":"research","credibility":2}],"severity":"medium"}],"timeline":[{"date":"2015-01-01","event":"EQIBank incorporated in Dominica under the Offshore Banking Act No. 8 of 1996.","source":"Tracxn / wiki.private.law","source_url":"https://wiki.private.law/en/eqi-bank"},{"date":"2018-10-01","event":"EQIBank launches customer-facing banking services, describing itself as the world's first licensed offshore bank for fiat, crypto, and digital assets.","source":"PR Newswire","source_url":"https://www.prnewswire.com/news-releases/eqibank-the-world-s-first-licensed-and-regulated-offshore-bank-for-national-currencies-crypto-and-digital-assets-has-launched-886322276.html"},{"date":"2026-02-01","event":"Beyond Enterprises LLC files civil lawsuit against EQIBank Limited and three Cayman Islands affiliates in the Central District of California, alleging breach of contract and securities fraud.","source":"OffshoreAlert / Law.com Radar","source_url":"https://www.law.com/radar/card/pm-62044852-beyond-enterprises-llc-v-eqibank-limited/"},{"date":"2026-04-02","event":"EQIBank learns that funds held by Capstone Ltd. at U.S. banks have been frozen.","source":"Unchained Crypto","source_url":"https://unchainedcrypto.com/tether-says-less-than-0-034-of-its-assets-sit-at-eqibank-an-offshore-bank-hit-by-us-seizures/"},{"date":"2026-06-01","event":"U.S. authorities issue formal seizure warrants against Capstone Ltd.'s accounts.","source":"Unchained Crypto","source_url":"https://unchainedcrypto.com/tether-says-less-than-0-034-of-its-assets-sit-at-eqibank-an-offshore-bank-hit-by-us-seizures/"},{"date":"2026-06-05","event":"Dominica's Financial Services Unit places EQIBank under enhanced supervisory oversight; co-founder Christopher Burke files a sworn declaration describing the measure as a preliminary step toward potential liquidation.","source":"Unchained Crypto","source_url":"https://unchainedcrypto.com/tether-says-less-than-0-034-of-its-assets-sit-at-eqibank-an-offshore-bank-hit-by-us-seizures/"},{"date":"2026-06-29","event":"EQIBank files an emergency motion for return of property in the U.S. District Court for the Eastern District of California.","source":"Crypto Briefing","source_url":"https://cryptobriefing.com/eqibank-fights-recover-90m-seized/"},{"date":"2026-07-15","event":"U.S. federal prosecutors file a civil forfeiture complaint in the Eastern District of California (case 2:26-mc-00208) against approximately $84.2 million held in Capstone Ltd. accounts at Wells Fargo and JPMorgan Chase, and in two Tron-based USDT wallets. Capstone operators Kotaro Shimogori and Mary Jeanne Thompson are identified; FBI executes search warrants at a Sacramento residence.","source":"Justia / Decrypt / Spazio Crypto","source_url":"https://dockets.justia.com/docket/california/caedce/2:2026mc00208/493780"},{"date":"2026-07-16","event":"Judge Dale A. Drozd denies EQIBank's emergency recovery motion on procedural grounds, finding the court lacked equitable jurisdiction after the formal forfeiture complaint was filed.","source":"Unchained Crypto","source_url":"https://unchainedcrypto.com/tether-says-less-than-0-034-of-its-assets-sit-at-eqibank-an-offshore-bank-hit-by-us-seizures/"},{"date":"2026-09-09","event":"EQIBank issues a public warning that continued loss of the frozen funds could force the bank into liquidation.","source":"Startup Fortune","source_url":"https://startupfortune.com/us-seizure-of-89-million-pushes-tethers-banking-partner-eqibank-toward-collapse/"},{"date":"2026-09-14","event":"Court order details the forfeiture case specifics; total seized amount confirmed at approximately $84.2 million across Wells Fargo, JPMorgan Chase, and two crypto addresses.","source":"Unchained Crypto / Spazio Crypto","source_url":"https://unchainedcrypto.com/tether-says-less-than-0-034-of-its-assets-sit-at-eqibank-an-offshore-bank-hit-by-us-seizures/"},{"date":"2026-09-24","event":"The Information reports on Tether's exposure to EQIBank, triggering broader press coverage.","source":"Unchained Crypto","source_url":"https://unchainedcrypto.com/tether-says-less-than-0-034-of-its-assets-sit-at-eqibank-an-offshore-bank-hit-by-us-seizures/"},{"date":"2026-09-25","event":"Tether publicly confirms it held funds at EQIBank, characterizes exposure as less than 0.034% of group assets, and states it had no knowledge of Capstone's alleged conduct. CoinDesk, Decrypt, and other outlets report full details of the forfeiture action.","source":"CoinDesk / CryptoTimes / Unchained","source_url":"https://www.coindesk.com/policy/2026/09/25/tether-confirms-minimal-eqibank-exposure-following-usd89m-us-asset-seizure"}],"sources_used":[{"url":"https://www.coindesk.com/policy/2026/09/25/tether-confirms-minimal-eqibank-exposure-following-usd89m-us-asset-seizure","name":"Tether downplays impact of US seizure at banking partner EQIBank — CoinDesk","type":"news_article","archive_url":"http://web.archive.org/web/20260925191623/https://www.coindesk.com/policy/2026/09/25/tether-confirms-minimal-eqibank-exposure-following-usd89m-us-asset-seizure","credibility":2,"archive_timestamp":"2026-09-25T19:16:23+00:00"},{"url":"https://dockets.justia.com/docket/california/caedce/2:2026mc00208/493780","name":"EQIBank Limited v. 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