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Bitfinex-Tether-Scandal-Related Boss to Proceed to Trial for Crypto Fraud in 2022

Thu, 5/08/2021 - 9:28
Bitfinex-Tether-Scandal-Related Boss to Proceed to Trial for Crypto Fraud in 2022
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As reported by Law360, a federal judge from NYC has named a preliminary date in 2022 for the trial of former NFL investor Reginald Fowler.

For providing shadow banking services, he allegedly used Crypto Capital, the payment processing company involved in an $850 million scandal involving Bitfinex and Tether.

Fowler is accused of crypto fraud involving millions of U.S. dollars and unregulated transactions for crypto exchanges and shadow banking operations.

Passing off unlicensed crypto transactions for real-estate-related payments

Reginald Fowler, who made a one-time investment into the NFL's Minnesota Vikings franchise, has been accused of performing a shadow business with bank accounts for crypto exchanges.

Fowler had cooperated with several banks that provided accounts and financial services to digital exchanges. He misled banks by telling them he was working with real estate deals while, in fact, he was processing unlicensed crypto transactions and stored funds for crypto exchanges.

The accused also provided falsified instructions for funds transfers to conceal his big illegal crypto business operations.

The man may be charged with bank fraud and conspiracy for running illegal transactions on the scale of a large business.

Related documents show that Fowler used payment processing company Crypto Capital (serviced by his Global Trading Solutions LLC in the past) for those unlicensed operations.

The Fowler trial has been scheduled for February of next year, but it may be pushed to April if it is required by pandemic restrictions.

Tether Faces U.S. Criminal Probe

Crypto Capital and Bitfinex-Tether $850 million fraud

The aforementioned company was involved in fraud related to prominent crypto companies with the same management team—Bitfinex and Tether Ltd—which suffered an $850 loss of their clients' money.

iFinex, the parent company, had paid an $18.5 million fine to settle the case and was forced to stop providing its services in New York State.

The loss of almost $900 million was the result of Bitfinex and Tether's cooperation with Crypto Capital.


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