President of Crypto Capital arrested in Poland for alleged money laundering.
The president of Crypto Capital, listed as a “shadow bank” in an accusation of fraud against Bitfinex and the issuer of Tether, was arrested by Polish authorities.
According to Polish media, Iván Manuel Molina Lee, was captured in Greece and transferred to Poland on Thursday 24. The authorities have accused Molina of being part of an international drug cartel and of running a money laundering operation that moved funds between Latin America and Europe.
The Polish prosecutor said that about USD 350 million, “probably from criminal activities” were transferred to several bank accounts in Poland between December 2016 and February 2018.
A court order to arrest Lee was issued in Europe on March 31 of this year. According to the Polish authorities, the arrest was the result of an international effort that involved Interpol, Europol and the DEA in the United States. It is also, according to the office of the Prosecutor General of Poland, “the greatest confiscation of funds in the history of the prosecution”.
This arrest occurs days after Bitfinex filed an appeal in a California court for the recovery of USD 850 million from Crypto Capital. While Crypto Capital argues that it is unable to return the funds because its accounts in Poland (among other countries) were frozen by the authorities, Bitfinex states that the payment processor based in Panama, distributed those funds in multiple bank accounts to evade detection of the authorities.
In the New York State Prosecutor’s lawsuit against Bitfinex and Tether, introduced at the end of last April, these companies were accused of using “third-party payment processors to handle customer withdrawal requests, including several companies owned by Bitfinex / Tether executives, as well as other Bitfinex friends, ”according to one of the sections of the lawsuit.
Among those payment processors, Crypto Capital, based in Panama, was pointed out, through which, according to the document, Bitfinex handled customer withdrawals. As part of the irregularities, it was noted that there was no formal contract signed between Bitfinex and Crypto Capital, despite the significant volume of funds at stake. “According to the documents provided to OAG by the Defendants, by 2018, Bitfinex had placed more than one billion dollars of corporate and client funds combined with Crypto Capital,” the lawsuit explains.
As reported by Decrypt, several of the largest exchange houses in the world have used the banking services of Crypto Capital, including Binance, Kraken, and BitMEX.
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