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Investigations into Crypto Capital Extensive and Global

October 28, 2019
Ross Peili


Investigations into Crypto Capital Extensive and Global

WARSAW – The president of the Panama-based Crypto Capital, was arrested as a part of a Polish investigation involving an international drug-trafficking group. It is said that Crypto Capital was processing money generated by drug sales, essentially offering laundering services to the illegal organization. 

Polish National Prosecutor’s Office identified the suspect as Ivan M.L, adding that he was transferred from Greece to Poland on Thursday. Later investigations revealed the suspect’s full name to be Ivan Manuel Molina Lee, according to major Polish Radio RMF.

The authorities say it is not the first time Crypto Capital surfaces in analogous scenarios, with the New York Attorney General Letitia James accusing the company earlier this April of participating in a cover-up related to the loss of more than $850m in client and corporate funds via the digital currency companies Tether (USDT), and Bitfinex exchange.  

When asked, Bitfinex affirmed that Crypto Capital indeed had processed funds for and behalf of the exchange for years.

Stuart Hoegner, general counsel for Bitfinex said to Bloomberg: “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.”

On the other hand, a NY grand jury previously charged members of Crypto Capital, including Oz Yosef (aka Oz Joseph), a Crypto Capital high-ranking official of conspiracy to commit bank fraud, and conspiracy to operate an unlicensed money transmitting business, according to a filing made public on October 23 in federal court in Manhattan.

According to the jury, Yosef operated in a scheme to open numerous bank accounts in the United States under the impression that Crypto Capital would use these accounts for real estate investments, while in fact, the accounts were subject to unlicensed money transmitting business related to the operation of cryptocurrency exchanges, including Bitfinex.  

Poland is among the most educated countries when it comes to cryptocurrencies with many blockchain firms hailing from the German neighbor. 

Recently Ministerstwo Finansow (or simply the Ministry of Finance) of Poland released a new guideline on taxing cryptocurrencies under the PIT-38 form (Personal Income Tax) from any individual that is involved in the digital currency scene, whether accredited or speculative investor. 

Therefore in-depth operations such as the one subjecting Crypto Capital under the law’s umbrella are not something that’s a one-time thing. 

Crypto is becoming a norm

When I read international news involving cryptocurrencies nowadays, I am not sure whether it’s a crypto article or a regular news article that happens to have crypto involved in the respective case. 

What I am trying to say is that we’ll be hearing more news involving cryptocurrencies as time passes, not because dlts gains momentum, but because crypto is spread so much that crime and police investigation articles, environmental protection articles, and even top-shelf political and economical articles include crypto somewhere along with the read.  

That essentially notifies that cryptocurrencies is already a regular aspect of modern societies pretty much everywhere on the globe.

Read our latest article where Xi Jinping is talking about how important blockchain technology really is, advising that the Chinese government should be fully focused on it at the moment.