The man in charge of Crypto Capital has been arrested on charges of money laundering and drug running.
Crypto Capital Is Under Fire
It has been reported that Ivan Manuel Molina – the president of Crypto Capital – has been taken into custody by Polish law enforcement for potentially being involved with “cocaine cartels.” Several other individuals have also been implicated and other arrests are expected in the coming weeks.
In addition, Molina has ties with Bitfinex – one of the world’s most popular and largest cryptocurrency exchanges – though representatives of the trading platform deny that executives had any knowledge of what Molina might have been up to. They explain in a statement:
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.
Some Polish news sources, however, are claiming that Bitfinex might be guilty in laundering as much as $390 million USD for Crypto Capital’s “illegal sources.”
This is not the first time Crypto Capital has been caught up in a shady situation. Last year, the company was entrusted with harboring as much as $850 million for Bitfinex, yet for some reason, those funds appear to have disappeared. BItfinex claimed that it was unable to access these funds later, yet Crypto Capital has denied any sort of theft or illicit activity.
Bitfinex released an official statement regarding the scenario, saying:
During this period, BItfinex relied upon various systematic representations from Crypto Capital, including from Molina… that proved to be false. Among those misrepresentations, Crypto Capital regularly referred to its integrity, banking expertise, robust compliance program and financial licenses.
The trading platform says that it won’t be surprised if this potentially leads to the launch of an additional (and extensive) investigation in the United States. As it stands, the company has reiterated that the money in question has not been the subject of thievery, but has instead been sized by government representatives in both Europe and the U.S. This, by all motions, suggests that the money is technically recoverable, though it’s hard to know if what Bitfinex is saying is true.
This Could Get a Lot Bigger
Crypto Capital has also worked with several other exchanges across the board including Kraken in San Francisco and BitMEX, so there’s a good chance this case could grow into something much larger.
Polish media group RMF 24 suggests that two companies sharing ties with Crypto Capital work to launder money. While these two companies remain unnamed at the time of writing, it’s been insinuated by RMF 24 – and other media companies – that they have been involved in hiding drug proceeds from drug cartels based in Colombia. Many of these drugs, it seems, have potentially been shipped into Europe.