Bitfinex states it was conned.
The crypto exchange and sister firm of Tether asserted October 25 that it was the “victim of a fraud” by Crypto Capital, a payment processor that purportedly lost $880 million of Bitfinex’s money. Ivan Manuel Molina Lee, president of Crypto Capital, was captured on October 24 by Polish police on charges of money laundering.
Officials had written that Molina Lee’s wrongdoings included “laundering dirty money for Columbian drug cartels using a cryptocurrency exchange.”
In an announcement published Friday, Bitfinex stated it would “make its position clear” to U.S. and Polish officials and would keep on pursuing the funds that Crypto Capital lost. As per the statement, Crypto Capital had misrepresented its “integrity, banking expertise, robust compliance programme and financial licences” to Bitfinex.
Molina Lee is wanted in Poland for laundering charges of up to 1.5 billion zloty (around $390 million) “from illegal sources,” as per reports in Polish publication W Polityce. Bitfinex repudiated rumors that it had any part in the payment processor’s money laundering.
“We cannot speak about Crypto Capital’s other clients, but any suggestion that Crypto Capital laundered drug proceeds or any other illicit funds at the behest of Bitfinex or its customers is categorically false,” wrote Stuart Hoegner, general counsel of Bitfinex.