Bitfinex denies money laundering and claims to be a victim of fraud
Exchange Bitfinex says they are a victim of fraud after the CEO of Crypto Capital was arrested for being a member of an international drug cartel and involved in its money-laundering operations using the Bitfinex exchange.
The exchange and affiliated companyTether claimed that it was the “victim of a fraud” at the hands of Crypto Capital, a payment processor that allegedly lost $880 million of Bitfinex’s cash.
The authorities had written that Crypto Capital's Molina Lee’s crimes included “laundering dirty money for Columbian drug cartels using a cryptocurrency exchange.”.
In a statement Bitfinex stated it will “make its position clear” to U.S. and Polish authorities and will continue to pursue the funds that Crypto Capital lost. They also added Crypto Capital had misrepresented its “integrity, banking expertise, robust compliance programme and financial licences” the firm.
The case still continues with Bitfinex still in hot water with the New York attorney general.
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
