Copy link
Increase text size
Decrease text size
Link copied

Bitfinex maintains its innocence in Crypto Capital’s money laundering scandal; claims it’s also a victim

Bitfinex claiming it’s the victim of Crypto Capital after the latter’s president was arrested by Polish authorities due to money laundering scandals involving the Columbian Cartel. Crypto Capital principal Oz Yosef indicted on three criminal counts.

Photo via Unsplash

Mon, 28 Oct 2019, 04:03 am UTC

Bitfinex and Crypto Capital’s relationship has gotten more complicated following the arrest of the Ivan Manuel Molina Lee, the latter’s president. Lee was apprehended by Polish authorities last Thursday as he’s being accused of laundering money for the Columbian Cartel.

The laundered fund is said to reach the amount of $390,000,000. This is grave news for Bitfinex as the crypto exchange has been trying – and failing – to force Crypto Capital to pay $880 million that it lost months prior. Crypto Capital is the payment processor of the exchange.

Crypto Capital principal Oz Yosef has been indicted by the United States Attorney for the Southern District of New York on three criminal counts. This has been reported by CoinDesk and Cointelegraph.

Citing court documents, the news portals said that Yosef has been indicted on conspiracy to commit bank fraud, bank fraud and conspiracy to operate an unlicensed money transmitting business.

Previously, Bitfinex said that it’s the “victim of a fraud” helmed by Crypto Capital. Following Lee’s arrest, Bitfinex released a statement last Friday maintaining its desire to pursue the company and take back the aforementioned money, CoinDesk reported.

Bitfinex claims it’s been duped by Crypto Capital

The crypto exchange added that Crypto Capital provided false reassurances regarding its reputation and operations leading to the vanishing of the $880 million. But while Bitfinex is harping that it has been conned by Crypto Capital, there are those who believe that the exchange might be involved in Crypto Capital’s money-laundering scandal.

Bitfinex, of course, denies the allegation and is maintaining its innocence. Stuart Hoegner, the exchanges general counsel, said that any rumors claiming the company is in collusion with Crypto Capital are mistaken.

“We cannot speak about Crypto Capital’s other clients, but any suggestion that Crypto Capital laundered drug proceeds or any other illicit funds at the behest of Bitfinex or its customers is categorically false,” Hoegner said.

Bitfinex and Crypto Capital’s relationship

In a nutshell, the doubts that have been lingering over both the company’s heads stem from the losses of the $880 million. Tether – a cryptocurrency whose existence is governed by bigwigs of Bitfinex – previously said that the lost funds aren’t actually lost but has been “seized and safeguarded,” BreakerMag reported.

The New York General Attorney has been investigating this case since last year and found damning messages exchanged between a senior Bitfinex executive and a representative of Crypto Capital. The dialogue was centered on the $880 million funds, with the Bitfinex exec urging Crypto Capital to release the money but was told it was seized by government authorities including Poland and the United States. Bitfinex didn’t buy the excuse and said that it fears that Crypto Capital is engaged in fraud, speculation that ultimately landed Lee behind bars.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $6,233.35 (-0.79%)
  • Ethereum (ETH) $130.30 (+0.07%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $214.46 (+1.65%)
  • Bitcoin SV (BSV) $156.75 (-2.62%)
  • Bitcoin (BTC) $6,233.35 (-0.79%)
Feb 21, 2020 (Friday)
12:01
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
12:00
Brazil to launch new payment system in response to cryptocurrencies
11:59
Digital currency exchange Coinbase Pro lists Kyber Network token
11:57
Norwegian Air to soon start accepting crypto payments
10:21
Swedish central bank begins CBDC pilot with Accenture
09:51
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
14:16
Telecom companies complete cross-carrier mobile payments using blockchain
11:53
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
11:00
South Korean ICO project discontinued, to return $7.5M to token holders
10:36
Samsung maintains crypto support in soon-to-launch Galaxy S20
09:41
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
09:15
Coinbase becomes first crypto company to receive Visa principal membership
08:59
Dubai Economy and six banks launch KYC Blockchain Consortium
08:26
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
07:12
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
06:13
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
05:02
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
04:56
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
04:35
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
12:46
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft