Skip to main content

Bitfinex Claims to Be Victim of Fraud After Crypto Capital President Arrested

Bitfinex Claims to Be Victim of Crypto Capital Fraud After President Arrested

The operators of Bitfinex claim that the cryptocurrency exchange is a victim of fraud committed by its payment processor Crypto Capital. The men behind Crypto Capital now face charges related to money laundering in Poland and the U.S.

Also Read: Tether Created ‘Largest Bubble in Human History’ Claims Lawsuit Against Bitfinex

Crypto Capital Leadership Accused of Money Laundering

Crypto Capital is a payment processor that handled funds for and on behalf of Bitfinex for several years according to public court documents. The cryptocurrency exchange accuses Crypto Capital of causing it to lose hundreds of millions of dollars.

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 principal 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.

Bitfinex Claims to Be Victim of Fraud After Crypto Capital President Arrested

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.

International Legal Saga

According to media reports from Poland, the allegations against the president of Crypto Capital include laundering funds for an international drug cartel from Colombia via Bitfinex and transferring them to Polish bank accounts. The reports mention that investigators found that from December 2016 to February 2018 approximately PLN 1.4 billion (US $360 million) was transferred to these accounts, which have been seized by authorities.

Bitfinex Claims to Be Victim of Fraud After Crypto Capital President Arrested

“Bitfinex is the victim of a fraud and is making its position clear to the relevant authorities, including those in Poland and the United States,” stated the company’s general counsel Stuart Hoegner on Friday. “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. This week’s developments do nothing to affect or otherwise deter Bitfinex’s claims to funds in Poland or anywhere else. We will continue to work to recover all funds for and on behalf of our stakeholders.”

What do you think about the continued legal drama surrounding Bitfinex? Share your thoughts in the comments section below.

Images courtesy of Shutterstock.

Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Bitcoin.com Markets, another original and free service from Bitcoin.com.

The post Bitfinex Claims to Be Victim of Fraud After Crypto Capital President Arrested appeared first on Bitcoin News.



from Bitcoin News https://ift.tt/2pXJPdd
Labels:

Comments

Post a Comment

Popular posts from this blog

Deep Web Roundup: Dream Adds Monero and Bitcoin Tumbler “Chip Mixer” Launches

The darknet has been quiet of late, which is the way it’s meant to be. No news means no mega busts, honeypots, or mass market shutdowns. Even when it’s out of the spotlight though, the deep web is quietly making news, whether trialling the latest privacy coins or the newest coin mixers that promise to restore a little of the privacy that’s being stripped away from bitcoin users on a daily basis. Also read: U.S. Agency ICE Conducts Investigations That Exploit Blockchain Activity The Battle for Privacy Heats Up Privacy is all relative, but of late there’s been relatively little privacy to be enjoyed by bitcoin users. Blockchain monitoring software is becoming more sophisticated and more common, with U.S. law enforcement agencies using it to profile and hunt down deep web users. Chip Mixer is a relatively new bitcoin tumbler that’s designed to restore some of that privacy. Available on both the clearnet and darknet, the service uses a variety of techniques to obfuscate blockchain m
10 comments
Read more

Ombudsman Receives Complaints About Crypto Investments in Spain

The Spanish ombudsman has been receiving complaints about cryptocurrency and how some Spanish citizens investing in these vehicles have lost everything. In his annual report, Angel Gabilondo recognized the rise of cryptocurrencies as a new problem due to the little or no regulation crypto sees in the country. In the same way, the EU has also warned about these assets recently. Spanish Ombudsman Gives His Take on Crypto Angel Gabilondo, the Spanish ombudsman, has given his take regarding cryptocurrencies and the effects they have on citizens investing in some of these projects. Gabilondo said in his yearly report that cryptocurrencies have become “a new problem” during the year examined, with many people having lost all of their funds invested. The report states : Cryptocurrency exchange companies or platforms are not regulated in the legal system, are not subject to any public supervision system, nor do they benefit from deposit guarantee systems. The affected users that sought
Post a Comment
Read more

International Crypto Exchange Luno Adds Bitcoin Cash Trading

Luno exchange has added bitcoin cash trading to the platform following feedback from its client base. BCH is now only the third cryptocurrency available for trading on the exchange, in addition to BTC and ETH , but more options could be on the way once Luno determines that they are credible enough. Also Read: Bitflyer Adds Bitcoin Cash Trading Across Europe and the US Luno Adds Bitcoin Cash Trading Luno, the London-headquartered company formerly known as Bitx, recently announced that bitcoin cash was made available on its cryptocurrency exchange. Starting from Monday, September 23, customers at Luno are now able to store, buy and sell BCH on the platform. The reason given for adding BCH to the exchange is feedback from users in developing markets that convinced Luno to expand their offering from previously just BTC and ETH . Marcus Swanepoel, CEO of Luno, said , “We are in a new and exciting financial era. Developing economies are leading the large-scale adoption and appli
Post a Comment
Read more