Bitfinex-Tether-Scandal-Related Boss to Proceed to Trial for Crypto Fraud in 2022

As reported by Law360, a federal judge from NYC has named a preliminary date in 2022 for trial for the former NFL investor named Reginald Fowler.

For providing shadow banking services, he allegedly used Crypto Capital – the payment processing company involved in the $850 million scandal involving Bitfinex and Tether.

Fowler is accused of crypto fraud involving millions of US dollars and unregulated transactions for crypto exchanges and shadow banking operations.

Passing off unlicensed crypto transactions for real-estate-related payments

Reginald Fowler, who made a one-time investment into NFL’s Minnesota Vikings franchise, has been accused of performing a shadow business with bank accounts for crypto exchanges.

Fowler had cooperated with several banks that provided accounts and financial services to digital exchanges. He misled banks by telling them he was working with real estate deals, while in fact he was processing unlicensed crypto transactions and stored funds for crypto exchanges.

The accused also provided falsified instructions for funds transfers to conceal his big illegal crypto business operations.

The man may be charged with bank fraud, conspiracy for running illegal transactions on a scale of a large business.

The related documents show that Fowler had used the payment processing company Crypto Capital (serviced by his Global Trading Solutions LLC in the past) for those unlicensed operations.

The trial over Fowler has been scheduled for February next year but can be possibly pushed to April if it is required by pandemic restrictions.

Crypto Capital and Bitfinex-Tether $850 million fraud

The aforementioned company was involved in the fraud related to the prominent crypto companies with the same management team – Bitfinex and Tether Ltd, which suffered an $850 loss of their clients’ money.

iFinex, the parent company, had paid an $18.5 million fine to settle the case and was forced to stop providing their services in the New York state.

The loss of almost $900 million was the result of Bitfinex and Tether’s cooperation with Crypto Capital.