Bitfinex allegations Crypto Capital on fraud

Posted 28 October, 2019

Crypto Capital, the alleged shadow bank that held money for several exchanges and whose president is being held by Polish authorities under money laundering charges, tricked Bitfinex to believe they were a law-abiding company. Bitfinex declared Crypto Capital “regularly referred to its integrity, banking expertise, robust compliance program, and financial licenses,” further clarifying “any suggestion that Crypto Capital laundered drug proceeds or any other illicit funds at the behest of Bitfinex or its customers is categorically false.”  The cryptocurrency exchange accuses Crypto Capital of causing it to lose hundreds of millions of dollars.

Bitfinex has issued a statement on the matter, saying that it was not involved in money laundering and that it has been lied to by Crypto Capital representatives including Molina and Yosef. Bitfinex claims that Crypto Capital falsely referred to its integrity, banking expertise, robust compliance program, and financial licenses to reassure it was capable of handling the company’s transactions.

“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.” - wrote Bitfinex general counsel Stuart Hoegner.

On Thursday it was reported that the payments processor’s president, Ivan Manuel Molina Lee, was extradited to Poland from Greece to answer charges related to money laundering. Another principle of the company, Oz Yosef, was indicted on three criminal counts by the U.S. Attorney for the Southern District of New York on Wednesday.

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