Reginald Fowler was convicted at a March 6 hearing in a New York City district court on a new charge of wire transfer fraud.
On February 20, the US government laid a replacement charge against Fowler, adding another to existing charges of bank fraud, illegal money transfers and conspiracies linked to Crypto Capital’s alleged shadow banking practices.
Fowler’s lawyer James McGovern criticized the new indictment and said he “had no idea why [Fowler] was charged “, and when and how the alleged transfer fraud allegedly took place.
“I never really received a full indictment because it provides less information than the previous one,” McGovern told the court.
Fowler had previously been offered a criminal settlement. He would have been willing to plead guilty to one charge on January 15. However, on January 31, the United States government announced that Fowler had declined the offer, and the offer was withdrawn.
Process postponed to 2021
Considering the rejection of the offer, the American lawyer Jessica Fender indicated that the government planned to go to justice in April.
Fowler’s representative opposed the prospect of a trial in April, saying: “The case has changed dramatically with the inclusion of this new charge.” McGovern said there were 30,000 documents he had not yet received that should be checked before trial.
How To Profit $1,000+ Per Day
Trading Penny CryptocurrenciesGet Instant Access
Judge Andrew Carter Jr. then ruled in favor of Fowler and adjourned the trial until January 11, 2021. The trial is expected to last between four and five weeks.
Ghost banking for cryptocurrencies
The former owner of the NFL team is accused of having acted as an unlicensed payment service provider and of deceiving financial institutions about the purpose of their accounts. Via Crypto Capital, Fowler is said to have provided parallel banking services for many cryptocurrency exchanges, including Bitfinex, Binance, Cex.io, Coinapult and QuadrigaCX.
Crypto Capital is believed to have started providing banking services to Bitfinex when the stock market was forced out of Taiwan in 2017. For the past two years, Bitfinex clients have been instructed to deposit funds into accounts held by financial institutions around the world. names of various Crypto Capital subsidiaries.
In October 2019, Crypto Capital CEO Ivan Lee was arrested in Poland. He was allegedly responsible for the funds confiscated from a subsidiary of Crypto Capital in 2018. The company is said to have washed part of this money for a Colombian drug cartel.
Crypto Capital Remains at the Heart of New York State Bureau’s Ongoing Investigation into Bitfinex’s Disclosure of $ 880 Million Loss in Client Funds and Subsequent Loan from Its Sister Company, Tether .
Bitfinex and Tether claim that the funds were not lost, but were confiscated with the accounts of various subsidiaries of Crypto Capital.
Subscribe to the newsletter news
We hate SPAM and promise to keep your email address safe