Bank fraud in Bitcoin exchanges: Crypto Capital worked for Bitfinex and Quadriga

The Bitcoin Ecosystem will always fight back with Confidence setbacks. Current entanglements between the stock exchange Bitfinex and the Stable-Coin-provider Tether Limited raised significant doubt on their credibility. Now, there are new insights: One of your service provider, the Crypto Capital, it connects with the Canadian exchange QuadrigaCX.

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What is Crypto Capital?

On their official Homepage: referred to the Crypto Capital not so much as a crypto-stock exchange, Bitcoin, Ripple & co. may act. Rather, they provide Bank accounts for platforms, companies and Individual, the Fiat and crypto-currencies want to trade. The 2013 company, founded in Crypto Capital Corporation referred to itself as a “private Fiat Banking platform, which supports all crypto-Blockchain.”

Operator in court

According to a notice from the U. S. Department of Justice in New York to two individuals to the US authorities for Bank fraud answer: Reggie Fowler and Ravid Yosef. Fowler has to contend with the allegation that he was operating unlicensed money transmission businesses. The Block now reported, two of the defendants in connection with the Crypto Capital, as employees of a Global Trading Solutions LLC, the parent company via Crypto capital. In order to get their banking licenses, they should have pretended to use the accounts only for Real-Estate transactions. The Bitcoin transactions fail to mention them apparently.

As we already reported, the Crypto Capital is a pivotal point in the current Bitfinex scandal. The secret transactions, by means of which Tether Limited Bitfinex helping out, and eventually led to the current indictment, handled the Crypto Capital Corp. You can see a Tweet in October of last year:

Bitfinex operates its banking business with the HSBC private Accounts of Global Trading Solutions. Very fitting, if you ask me […].

First arrests and seizures

How Modern Consensus now elsewhere reported, the authorities in the case of Bitfinex, the first funds will be confiscated and the authorities took Ravid Yosef, however.

If convicted, Fowler and Yosef are a total of up to 30 years in prison, if you fraud for the Bank and for the attempt of a conspiracy to Bank convicted of fraud in at least one case is. Fowler is facing in addition to the accusation, to have an unlicensed money transfer business operated. Five years in prison threaten him each addition.

What is crypto capital is now under additional pressure and her tarnished reputation is not likely to be conducive to, the list of your Partner. Because as you can see from their official website, supported you in the past, another Bitcoin exchange: QuadrigaCX. Also, this made it in the past, in the headlines because of the sudden and not ultimately clarified the death of their operator of the loss of millions in customer deposits.

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