The New York Attorney General is still investigating its allegations against Bitfinex and Tether and a $900 million bailout loan which was backed by the reserves of Tether stable coin.
The US Department of Justice has however also charged two individuals associated with the crypto exchange’s payment processor.
The company called Global Trading Solutions LLC is related to the controversial payment processor of Bitfinex. It also lay claims to be servicing Quadriga, Coinapult, CEX.IO and EXMO.
The U. S. authorities charged the two individuals connected to the matter of providing shadow banking services to crypto exchanges.
Two individuals face charges from the U. S. DOJ
Reginald Fowler and Ravid Yousef have been the focus of the U. S. Department of Justice charges.
They have been accused of misleading some financial institutions. They claimed they were funneling money for real estate transactions, whereas they used the funds to provide payment services for crypto exchanges.
Aside Bitfinex, the duo provided services to other cryptocurrency trading venues. They used accounts in their own names along with corporate accounts held by Global Trading Solutions LLC.
The charges facing the duo are very strict and each could get up to 30 years in jail on multiple counts.
Misguiding financial institutions the way they did will also attract serious scrutiny from the U. S. authorities.
Further details on their accusations
The transactions took place between February and October 2018. This period fits with the alleged disappearance of a significant amount of money from Bitfinex.
Fowler, who got indicted is in custody. He was also associated with a bid for the Minnesota Vikings in 2005, where he became a limited partner in the group.
He admitted to having defaulted in October 2014 after a U.S. Bank obtained a judgment against him.