Man And Woman Worked with Bitfinex Charged In Connection With Providing Shadow Banking Services

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BY MARKO VIDRIH: The prosecutor of the southern district of New York filed accusations against two individuals involved in the provision of money transfer services for cryptocurrency exchanges without a license. 

Reginald Fowler and Ravid Yosef are accused of organizing a shadow banking service, with the help of which

“that processed hundreds of millions of dollars of unregulated transactions on behalf of numerous cryptocurrency exchanges,” said prosecutor Geoffrey S. Berman, without naming the exact amount.

According to court documents, Fowler and Yosef fraudulently conducted transactions for cryptocurrency exchanges, convincing banks that their business is related to real estate investments. The company was active from February to October last year when it opened and used numerous bank accounts with financial institutions insured by the Federal Deposit Insurance Corporation.

In particular, the firm worked with the Bitfinex cryptocurrency exchange, with respect to which the New York public prosecutor’s office is currently considering the case. In addition, it may be associated with the company Crypto Capital, which also provided Bitfinex services and other cryptocurrency exchanges.

Fowler and Yosef are accused of committing banking fraud and conspiring to commit banking fraud. Fowler has been separately charged with providing money transfer services without a license.

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