Crypto Capital Co-Founder Reggie Fowler to Face Trial in February 2022

Friday, 06/08/2021 | 13:15 GMT by Arnab Shome
  • He is facing charges of bank fraud, money laundering and running an unlicensed money transmitting business.
Crypto Capital Co-Founder Reggie Fowler to Face Trial in February 2022
court room

The court trial of Reginald ‘Reggie’ Fowler, one of the Co-Founders of Crypto Capital, will start next February over several allegations that include his involvement in running ‘shadow banking’ operations.

According to the latest court documents filed on Wednesday, a New York judge has set the date of Fowler’s trial for February 14, 2022, but the date can be changed if necessary due to future pandemic restrictions.

The US prosecutors charged Fowler for operating an unlicensed money transmitting business and providing services to crypto firms. He was additionally accused of bank fraud and conspiracy to commit bank fraud and for laundering money for the Columbian drug lords.

The deadline for his pre-trial motions has been set for October 1, 2021, and the prosecution will have until October 22 to respond to the motion. Fowler’s legal representatives can again issue a response by November 5.

Hundreds of Millions of Dollars at Stake

Fowler, who is also a former National Football League team owner, remained at the center of the controversy of two iFinex subsidiaries, Tether and Bitfinex. The crypto Exchange suffered a loss of $850 million with its dealings with Crypto Capital and was later accused of covering up the losses with an unsecured loan obtained from Tether.

The New York state prosecutors settled the charges against Bitfinex and Tether earlier in February, imposing a civil penalty of $18.5 million on the companies. Furthermore, they were ordered to shut all operations in New York.

However, Fowler refused to enter into any guilty plea with the prosecutors. He and his fugitive partner, Ravid Yosef, are believed to be holding $345 million in 60 different bank accounts. Some of the accounts were opened under the name of Global Trading Solutions LLC, a shell entity set up by Crypto Capital.

A guilty plea of Fowler would have forced him to forfeit all these funds, which he claims to be his own money.

The court trial of Reginald ‘Reggie’ Fowler, one of the Co-Founders of Crypto Capital, will start next February over several allegations that include his involvement in running ‘shadow banking’ operations.

According to the latest court documents filed on Wednesday, a New York judge has set the date of Fowler’s trial for February 14, 2022, but the date can be changed if necessary due to future pandemic restrictions.

The US prosecutors charged Fowler for operating an unlicensed money transmitting business and providing services to crypto firms. He was additionally accused of bank fraud and conspiracy to commit bank fraud and for laundering money for the Columbian drug lords.

The deadline for his pre-trial motions has been set for October 1, 2021, and the prosecution will have until October 22 to respond to the motion. Fowler’s legal representatives can again issue a response by November 5.

Hundreds of Millions of Dollars at Stake

Fowler, who is also a former National Football League team owner, remained at the center of the controversy of two iFinex subsidiaries, Tether and Bitfinex. The crypto Exchange suffered a loss of $850 million with its dealings with Crypto Capital and was later accused of covering up the losses with an unsecured loan obtained from Tether.

The New York state prosecutors settled the charges against Bitfinex and Tether earlier in February, imposing a civil penalty of $18.5 million on the companies. Furthermore, they were ordered to shut all operations in New York.

However, Fowler refused to enter into any guilty plea with the prosecutors. He and his fugitive partner, Ravid Yosef, are believed to be holding $345 million in 60 different bank accounts. Some of the accounts were opened under the name of Global Trading Solutions LLC, a shell entity set up by Crypto Capital.

A guilty plea of Fowler would have forced him to forfeit all these funds, which he claims to be his own money.

About the Author: Arnab Shome
Arnab Shome
  • 6368 Articles
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6368 Articles
  • 80 Followers

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