Bitfinex Applies for 3 Subpoenas to Help Recover $880M in Crypto Capital’s Frozen Funds

BitFinex seeks subpoenas from U.S courts to depose U.S based banks after its payment processing firm, Crypto Capital, had its funds frozen in 2019. According to the subpoenas sent to Colorado, Arizona, and Georgia, Tether’s sister company, iFinex, looks to the federal courts to intervene in the release of over $800 million in its funds held in the U.S bank accounts after its payment processing firm accounts were seized by international authorities.

BitFinex Requests Bank Records From U.S Affiliated Banks

Bitfinex aims to obtain a court order that asks the banks that stored funds for Crypto Capital including SunTrust Bank in Georgia, Bank of Colorado, ABT & Trust in Arizona, to release their bank records. This allows BitFinex to prove the company held funds in Crypto Capital’s bank accounts in Poland, Lisbon, London, and across other countries that seized the company’s assets.

The statement from BitFinex reads,

“Crypto Capital subsequently transferred funds between and among various banks, including in Europe and the United States.

In the U.S. alone, Applicant has information that Crypto Capital used accounts held not only at SunTrust, but also Bank of America, Bank of Colorado, Citibank, Enterprise Bank & Trust, HSBC, Stearns Bank, Wells Fargo, TD Bank, and US Bank.”

As the global banks across the world shut its doors for BitFinex given the regulatory requirements regarding crypto, the exchange chose Crypto Capital to process its payments. The exchange claims to have deposited over $800 million in the bank accounts over the years. Now under investigation under criminal charges for AML compliance, the exchange cannot access their funds.

This is the second wave of subpoenas sent out by the exchange after October 2019 filed in Californian courts. The court granted the exchange a testimony from a former TCA Bancorp executive on the Crypto Capital accounts. The exchange was also successful in obtaining a court order in Arizona to check Crypto Capital accounts too.

The Freeze: Crypto Capital

BitFinex’s payment processing bank, Crypto Capital, saw its accounts frozen in 2019 after the President of the company, Ivan Manuel Molina Lee, was charged in Poland for being part of an international money-laundering ring. Ivan is accused of helping drug cartels and mobsters to launder over $360 million on its exchange.

Notwithstanding, Crypto Capital’s, Oz Yosef, is also in trial on conspiracy to commit bank fraud, actual bank fraud and plans to operate an unlicensed money transmitting business.

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