This is more of a case where capitalism decays into fascism.

Capitalism relies on a decent legal framework to function. It doesn’t have to be equal, but it has to be consistent. It is usually why a lot of nations defined by capitalism are generally not dictatorships; monied interests are given ways to influence policy.

Fascism concentrates power and frees that power from restraint in order to benefit a part of society. The ability for a person to imprison anyone without legal checks is an extraordinary power.