The Bitfinex operators claim that the cryptocurrency exchange is the victim of fraud committed by its payment processor Crypto Capital. The men behind Crypto Capital are now facing money laundering charges in Poland and the United States.
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The management of Crypto Capital accused of money laundering
Crypto Capital is a payment processor that manages funds for and on behalf of Bitfinex for several years in accordance with public court documents. The cryptocurrency exchange accuses Crypto Capital of losing hundreds of millions of dollars.
On Thursday, the chairman of the payment processor, Ivan Manuel Molina Lee, was extradited from Poland to Poland to face money laundering charges. Another company executive, Oz Yosef, was charged on Wednesday with three charges by the US District Attorney in the Southern District of New York.
Bitfinex issued a statement on this subject, stating that she was not involved in money laundering and that she had lied to the representatives of Crypto Capital, including Molina and Yosef. Bitfinex claims that Crypto Capital misrepresented its integrity, banking expertise, robust compliance program, and financial licenses to ensure that it was able to manage the company's transactions.
International legal saga
According to the Polish media, the president of Crypto Capital allegedly laundered funds for an international drug cartel from Colombia via Bitfinex and transferred them to Polish bank accounts. The reports indicate that investigators found that between December 2016 and February 2018, approximately 1.4 billion zlotys (360 million USD) were transferred to these accounts, which were seized by the authorities.
"Bitfinex is a victim of fraud and clearly exposes his position to the relevant authorities, including those in Poland and the United States," said the company's general counsel, Stuart Hoegner. "We can not talk about other customers of Crypto Capital, but any suggestion that the proceeds of the drug laundered by Crypto Capital or any other illicit funds at the request of Bitfinex or its customers is categorically wrong. This week's developments do not affect or deter Bitfinex's claims on funds in Poland or elsewhere. We will continue to work to recover all the funds for and on behalf of our stakeholders. "
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