Crypto Capital co-founder Reginald Fowler has turned down a plea deal with the U.S. government on an ongoing case alleged as “Shadow bench” for multiple crypto exchanges.
Fowler was charged, along with Israeli citizen Ravid Yosef, in April 2019 for allegedly running a shadow bank for several cryptocurrency firms, including Bitfinex and Tether, which are currently embroiled in a separate case accused of establishing it “The largest bubble in human history” According to a letter from the prosecutor’s office dated January 31, the co-founder of Crypto Capital “Rejected the current plea offer”, and the US government “has officially withdrawn this offer.” The parties will now go to court on April 28th.
Fowler was part of a group of investors who bought the NFL’s Minnesota Vikings from Red McCombs, the previous owner, in 2005. Fowler originally wanted to become a General Partner but withdrew his offer when he was unable to provide details on his stake in the owner group before losing control of his businesses in 2014 after bankrupting millions of unpaid debt.
In April 2019, New York Attorney General Letitia James filed a lawsuit accusing Bitfinex of using the reserves of an affiliate later known as Crypto Capital to cover a loss of $ 880 million. However, the extent to which Bitfinex was aware of the seedy operations at Crypto Capital remains unclear after the company filed an investigation last October to subpoena a former bank manager for access to $ 880 million in frozen funds .
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The filing in the Bitfinex case finds that Crypto Capital “provided Services As a Payment Processor to [iFinex], Transfers from and to [iFinex] and be Customers,” since 2014. However, as of December 2018, Crypto Capital has not sent the funds after its bank accounts were seized by US prosecutors.
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