Bitfinex Cries Foul On Laundering Allegations, Claims It Was The Victim Of A Fraud


In an official statement released by Bitfinex on Friday, the company says it was conned.

On October 24th the President of Crypto Capital, Ivan Manuel Monlia Lee, was arrested by the Polish police. He's been charged with laundering up to $390 million in cryptocurrencies for a Columbian drug cartel.

Bitifinex claims that any suggestion that Crypto Capital, the former payment processor for Bitfinix, laundered drug proceeds or any other illicit funds at the behest of Bitfinex or its customers is categorically false.

Crypto Capital had helped process funds for Bitfinex for several years and was allegedly involved in the loss or possible theft of $880 million of Bitfinex's cash.

Bitfinex wrote,

“This week's developments do nothing to affect or otherwise deter Bitfinex's claims to funds in Poland or anywhere else. We will continue to work to recover all funds for and on behalf of our stakeholders.”

Clarifying its position to all the relevant authorities, Bitfinex mentioned that its relationship with Crypto Capital was based on certain misrepresentations. These were made by Crypto Capital’s representatives, including Monila and Yosef, both accused in the case.

It said,

“Among those misrepresentations, Crypto Capital regularly referred to its integrity, banking expertise, robust compliance programme and financial licences. This was designed to assure us that Crypto Capital was capable of handling Bitfinex's transactions.”

Previously, on October 18th Bitfinex’s parent company IFinex filed an application for discovery in an attempt to recover $880 million from Crypto Capital – funds Bitfinex has been unable to access since at least December 2018, as the payment processor claims that its bank accounts have been seized or frozen by several government agencies

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