Topic: Crypto Capital President Arrested For Money Laundering Operation (Read 302 times)

Money laundering is the illegal process of concealing the origins of money obtained illegally by passing it through a complex sequence of banking transfers or commercial transactions. The overall scheme of this process returns the money to the launderer in an obscure and indirect way. Source
In it development, Money Laundering crimes have become increasingly complex, crossing jurisdictional boundaries, and using more varied modes, utilizing institutions outside the financial system, and have even penetrated into various sectors Source, and in my opinion bitcoin and altcoin and cryptocurrency too.

From the above understanding, we can conclude that this action will clearly harm the country economically. Almost every country has committed this crime and we as citizens must support government efforts in terms of prevention, implementation, and compliance with rules.
In the case of the OP, I appreciate the efforts of the Polish government in preventing money laundering. I also hope that other countries can reveal similar cases so that this step is more effective.

Cryptocurrency is a medium that according to many people is very vulnerable to money laundering. But I do not expect cryptocurency to be blamed in this case, because it is not the wrong media but the perpetrators who have the right to be blamed for abusing this media.

This is a move that need to be appreciated by all and sundry that wants the progress of the crypto space really because its shows that you cannot hide under the anonymity that crypto provides and use that as a means to perpetuate fraud and think you can get away with it. There is the long arm of the law that can stretch to any length to ensure you are brought to the book to face the consequence of your actions.

Consider this a warning shot for people who think they could get away woth crimes using cryptocurrencies. A high profile person like this one couldn't get away with this what more if you are just operating scams in the lower spectrum. But I just hope that the authorities won't fovus more on big crimes like this as the small time ones are what hurting their consumers more. Yes I get the part that Bitfinex was involved with this one and it has affected a lot of their users but I'm talking about the ones who built websites claiming to be companies and asking money through hyips which is also big if you consider the thousands of victims they have fooled.

Well, that's inevitable for those kinds of people. But, on the brighter side, arresting this big syndicate is something that the future cyber criminals should reflect on. Even with the decentralized currency, but they are still susceptible from being tracked by the authorities.



Cases like this which involves huge amount of money laundering is non-bailable, and this people will rot in jail.

It will be a small world for bad people who used crypto currency for their illegal activities because even if they choose any crypto friendly nations other than Poland but still they will be probably will be caught because of the huge money that involved. Unlucky for them as even Crypto is legal in Poland but still fhey imposed a very strict policies towards Crypto currency related activities https://medium.com/altcoin-magazine/how-are-cryptocurrencies-regulated-in-poland-c8e590e078ec

Bitfinex has been cooperated with crypto capital for several years, even crypto capital provide banking service for some major exchanges such as Binance, Kraken, and BitMEX.
If you cooperate with someone for years, the trust will thrive between two parties especially when it comes to millions of dollars in stake. It just the mistake driven by the greediness of Ivan Manuel Molina being a part of a drug cartel money-laundering using cryptocurreny. Bitfinex is just unlucky.

It's fiat money which has been seized, multisig wouldn't have helped here. They need on and off ramps for fiat, but because they couldn't find a bank willing to do business with them (more transparent exchanges lose access to banking all the time), they were forced to rely on a shady intermediary.

I've never been a fan of how Bitfinex handles their business knowing that they have been involved in some of these issues, whether it being caused by them directly or not. Apparently though, this one they outright messed up, and I don't think the $350 mil will ever get returned to them. Knowing how big Bitfinex is as an exchange entity, no one on their higher echelons has even thought of doing multisig for the funds, or it could be that they are somewhat involved in this scheme but just chose to play victim all along and the one that got arrested took all the blame..

There are some angles to view this issue on but I sure hope that Bitfinex isn't directly involved.

The time has come to weed out the illegal operations conducted by this organization as this is a disgrace to the whole cryptocurrency industry. The message here is so clear: There is no place for a business like Crypto Capital in this industry and this should be serving a big warning to anyone doing the same thing or planning to do the same maneuvering.  Let's hope that Bitfinex and pother similar victims can be able to recover some funds they lost to this scumbag Crypto Capital.
[\qoute]



So meaning nobody can keep the crimes, yes this news is warning for those people have plan to attempt use crypto for the illegal activities. Btter to use crypto in a good way to help people and coomunity to get out into poverty crypto is good but some people they use it into bad ways.



Since they dealt with fiat money, they likely had such obligations. And they did (try to) fulfill them since they did ask for KYC to deposit/withdraw money, the question is did they at least do the minimum that was required of them, or did they turn a blind eye to anything they shouldn't have.
[/quote]


Before I am against KYc implementation from the exchange but I released why I am scared to submit kyc if i have nothing bad intentions using crypto currency.

Since they dealt with fiat money, they likely had such obligations. And they did (try to) fulfill them since they did ask for KYC to deposit/withdraw money, the question is did they at least do the minimum that was required of them, or did they turn a blind eye to anything they shouldn't have.

This does raise some interesting questions about AML obligations when third party e-money/financial companies are involved.

The media reports allege that Bitfinex was being used to launder high volumes of illicit money. Shouldn't they have AML controls in place to prevent that from happening, long before multiple national police are seizing bank accounts?

It depends on the exact circumstances, we don't have the full picture. In the US the money would probably be gone forever though.

More drama involving Bitfinex.

These individual rogue actors are what is painting the entire crypto business scene in a bad light. The media obviously plays a role in propagating this type of stereotypes into the mainstream reader base as well. Money laundering occurs everywhere and yet, when the means of transaction is crypto, people seem to make a big fuss about it even though it might not even be near the size of some operations done with fiat.

Either way, my biggest takeaway is to avoid Bitfinex for now. They seem to have a history of associating with questionable characters.

anything is possible but i wouldn't hold your breath. this is an unlicensed shadow bank commingling bitfinex funds with colombian drug money, and the USA government is involved. returning bitfinex's money is not a priority---and i even wonder if fines and disgorgement will take precedent over crypto capital's creditors.

i also wonder if bitfinex will be implicated in some way. i'm not sure what their due diligence obligations are when dealing with payment processors like crypto capital, but these optics are bad:

Probably because they couldn't find anyone else. And in other countries more money has been seized IIRC.


Bitbay just moved from Malta to Estonia. I'm not sure if Germany is a cryptocurrency-friendly company, seeing how few Bitcoin ATMs they have compared to Austria: https://coinatmradar.com/countries/


Not necessarily, unless Bitfinex knowingly participated in drug money laundering or knew people behind Crypto Capital did, but it will probably take years to get the money back.

that's why some exchanges are so obviously concerned about having all their ducks in a row: money transmitter licenses, FINCEN registration, wire act and UIGEA compliance, partnerships with chainalysis and ciphertrace at al.....

bitfinex handed all that money to a shady unlicensed money transmitter. losing it this way was always a possibility.

Won't it be given back to them after trial?

If it won't be given back,  these huge amount of money is really going to motivate authorities into seizing all these exchanges involving in money laundering. A slight error can be a chance to investigate the most reliable exchange too. $850M is a lot of money, they'd hire a SWAT team to get into the offices.     Too bad for Molina, caught too early before the adoption takes place.

can't use multisig for fiat money.


fat chance. that money is tainted, tied to money laundering for drug cartels. it's no doubt gone forever.

i'm pretty sure bitfinex is out the full $850 million. my reading is that crypto capital held $850 million on behalf of bitfinex, some of which was seized. but all of it became inaccessible when crypto capital got targeted by law enforcement and became insolvent. the DOJ froze reggie fowler's money 6 months ago so they are obviously going after the money. i just doubt bitfinex will get a penny back.

I have to disagree there, most people don't know what they're talking about on this front. I've had people say "bitcoin is good for money laundering because of that guy from silk road that got arrested" which clearly it isn't good for laundering if you get caught...

Yeah hopefully, but it's not the first time bitfinex have lost crypto due to poor dilligence. First one I know of was this one. This was when I stopped using them...


Is the double negative intentional?

For sure they are already aware on what to do next.It was a mistake though for sure in next time it wont happen.Talking about that $350 Million
i doubt those amounts wont be credited.

This would be an another bad publicity for crypto and to those people who do have zero knowledge would simply believe out that crypto isnt a good thing to involve on.

Lastly, people who do commit these crimes are just right to face up consequences.This would be an eye opener and a warning to others would do the same thing.

This could be another message for people who were keep accusing crypto currencies mainly used for money laundering purpose,even if the do then sooner or later they will get caught like what happened in OP.

Makes you wonder why they chose Poland. It's well known as one of the countries where crypto companies are not welcome. I remember reading about their biggest exchange Bitbay moving to Malta because it was being harassed by the authorities. I'd expect a large crypto operation to be in a more friendly country like Estonia, Malta, Germany, even Belarus.

This serves as a message that you are only anonymous as long as you don't exchange to fiat. Cryptocurrencies aren't a good for laundering.

I can easily shrug off those newbies who are victims of hacking and scams online because they must really be innocent and ignorant of the industry they are threading into but when we talk about a big business like Bitfinex it is really a big WHY on my part how come they allowed themselves to be misled and fooled by the people of Crypto Capital. I guess stupidity and lack of common sense is really affecting us all, whether an individual or an organization which we assumed must have been exposed already to many possible risks and wide experience here in the world of cryptocurrency. Let's hope that Bitfinex can recover something from the amount of assets they lost to Crypto Capital and that there will no legal complications ahead.

Or at least bitfinex can learn from its mistakes and not entrust funds to any one entity... Why wouldn't they multisig those funds with a few other parties.

It'll be interesting to see if they get that 350 million credited back to them though.

Crypto Capital President Ivan Manuel Molina Lee was arrested by Polish authorities, accused of being part of an international drug cartel and involved in its money-laundering operations using Bitfinex.

Crypto Capital was a company with which Bitfinex allegedly entrusted $850 million, money the exchange said it was unable to access later. To cover the loss, the exchange conducted a $1 billion token sale in May.

...the Polish Ministry of Justice had seized bank accounts in name of Crypto SP. Z O.O. The seized funds, which amount to $350 million, reportedly belonged to Crypto SP. Z O.O. and NESP SP. Z O.O., two companies likely affiliated with Crypto Capital and Molina Lee, according to several financial documents. The seizure was a part of an anti-money laundering operation conducted by the Polish authority.


Read more of this development here...




The time has come to weed out the illegal operations conducted by this organization as this is a disgrace to the whole cryptocurrency industry. The message here is so clear: There is no place for a business like Crypto Capital in this industry and this should be serving a big warning to anyone doing the same thing or planning to do the same maneuvering.  Let's hope that Bitfinex and pother similar victims can be able to recover some funds they lost to this scumbag Crypto Capital.