- Two individuals have been charged with shadow banking services to crypto exchanges.
- The Interrogation was made by the NY Attorney General.
The US Department of Justice is reportedly charging two individuals regarding the crypto exchange’s payment processor. The announcement was made after an investigation associated with a $900 million bailout loan between Bitfinex and Tether. Tether provided a credit facility of $900 million to Bitfinex to accommodate the exchange’s liquidity needs.
Global Trading Solutions LLC is affiliated with the payment processor of Bitfinex along with Quadriga, Coinapult, CEX.IO, and EXMO. The firm called Crypto Capital is owned by similarly named Global Trade Solutions A.G.
Bitfinex’s clients were experiencing withdrawal delays since last several months. An interrogation made by the NY Attorney General revealed that the payment processor of the company called Crypto Capital was claiming to not have access to $650 million worth of Bitfinex funds allegedly held by three governmental authorities – two in Europe and one in the US.
Two individuals named Reginald Fowler and Ravid Yousef have allegedly misled financial institutions for channeling money for real estate transactions while using the funds to provide payment services for crypto exchanges. The transactions occurred between February and October 2018.
Share
