Ivan Manuel Molina, Crypto Capital’s President, is currently under the Polish Police custody following his arrest. The controversial ‘Crypto bank’ president is accused of laundering money for a Columbian Drug Cartel through crypto exchanges like Bitfinex.
In an article, Poland’s Media RMF 24 have said that Manuel Molina’s arrest is indeed in connection to funds that have been seized. These are believed to be the proceeds of Narcotics trade; they appear to have found their way into financial systems until the freeze by Poland’s authorities. The news further add that Manuel had been arrested in Greece and was later extradited to Poland.
The National Public Prosecutor Office in Poland acknowledged the freeze as the largest in the country’s history in Narcotic related funds. It claims that close to $350 million put under Crypto Capital custody and transferred through Poland’s ecosystem is probably related to criminal operations. The Polish Authority adds that transfers of these funds took place between the end of 2016 and beginning of 2018.
Crypto Capital is said to own bank accounts in Skierniewice, a town in Poland. The ‘Crypto Bank’ operated together with Bank Spoldzielczy which acted as the financial intermediary gateway into the Polish economy.
This is not the first time Crypto Capital or its leaders were in trouble with the authorities. Earlier they had been targets of the U.S Justice department on allegations of shadow banking. Crypto Capital provided its services to mostly players within the Crypto space; the company is currently at risk of being subpoenaed by Bitfinex after it failed to process $880 million entrusted to them.
Polish prosecutors said,
“This the largest effort by Polish prosecutors to secure losses associated with illegal activity,”
“The effort was a combined effort between Polisha and international special forces. The proceedings were conducted by prosecutors from the Lower Silesian Branch of the Department for Organized Crime and Corruption of the National Prosecutor’s Office in Wrocław and officers who closely cooperated with Europol, Interpol and US services, including the DEA.”
Bitfinex recently filed a subpoena request to have Crypto Capital produce the documents that outline their contract. This was triggered by their sour relationship over the course of 2019 as a result of Crypto Capital’s failure to meet its obligation. The firm continued to maintain that Bitfinex’s alleged funds had been frozen in Poland among other European nations.