Polish police Crypto Capital arrest of President Ivan Manuel Molina Lee, accused of being a part of an international drug cartel and involved in its own money-laundering surgeries using Bitfinex, according to several Polish news websites. Based on Decrypt, many other major cryptocurrency exchanges, such as Binance, Kraken, and BitMEX, also have utilized Crypto Capital's banking services. Kraken terminated its relationship with Crypto Capital in early 2017, a spokeswoman said in an email. The besieged crypto exchange Bitfinex allegedly lost $850 million to Crypto Capital and then sold a billion dollars worth of tokens to cover the loss. Bitfinex controls the issuance of the popular stable coin Tether.
Bitfinex is being investigated by the United States SEC for alleged criminal violations of the securities laws in its issuance of the stable coin tether that is allegedly backed by dollar deposits on a 1:1 basis. To date, no audit of this alleged backing has been made available. BITFINEX is also the subject of a class-action lawsuit alleging it's manipulative actions led to tens of billions of losses to crypto holders during 2018.
Polish Media RMF 24 said Molina Lee was sought by Polish police in relation to the seized money, which was"about laundering money from Colombian drug cartels throughout the cryptocurrency exchange," the article said. It was previously reported that the Polish Ministry of Justice had seized bank account in the title of Crypto SP. Z O.O. The seized funds, which amount to $350 million belonged to Crypto SP. Z O.O. and NESP SP. Z O.O., two companies probably correlated with Crypto Capital and Molina Lee, according to many fiscal records. The seizure was a part of an anti-money laundering operation conducted by the jurisdiction. According to the National Public Prosecutor's Office, The money-laundering surgery was"the most significant security [seizure] in the background of this Polish prosecutor's office against forfeiture."
In a site post published on Friday, Bitfinex said it"is the victim of a fraud and is currently now making its position clear to the relevant authorities, such as those in Poland and the United States." Crypto Capital was a company with which Bitfinex supposedly entrusted $850 million, cash the market said it was not able to access afterward. To cover the loss, the trade conducted a $1 billion sale. The exchange said that Crypto Capital has acquired funds for and on behalf of Bitfinex for many years, during which time the trade was provided by the company with false information.
Posted from my blog with SteemPress : https://bitcoinbonanza.co/crypto-capital-arrest-money-laundering-drug-cartels/