DOJ Hits Crypto Schemers With Bank Fraud Charges for Offering Services via Global Trading Solutions
Two individuals have been hit with bank fraud charges after offering crypto-related services to different cryptocurrency exchanges. The information was announced by the U.S. Department of Justice in a recent statement. The accused individuals include Reginald Fowler and Ravid Yosef. They are from Arizona and Tel Aviv respectively.
U.S. Department Of Justice Hits Individuals Accused of Fraud
The U.S. Attorney’s Office for the Southern District of New York informed that Mr. Fowler and Mr. Yosef explained that they were part of a scheme that involves using bank accounts to move funds for crypto exchanges. From the investigation participated agents from the FBI’s New York Money Laundering Investigations Squad and also the Internal Revenue Service (IRS).
As per these documents released by the DOJ, these businesses operated between February and October 2018 offering services to unnamed crypto exchanges. Some of the bank accounts are held with the name GLobal Trading Solutions LLC and HSBC Securities USA/Pershing LLC.
U.S. Attorney Geoffrey Berman said in a recent statement:
“Reginald Fowler and Ravid Yosef allegedly ran a shadow bank that processed hundreds of millions of dollars of unregulated transactions on behalf of numerous cryptocurrency exchanges. Their organization allegedly skirted the anti-money laundering safeguards required of licensed institutions that ensure the U.S. financial system is not used for criminal purposes.”
There have been different scams in the cryptocurrency market in the last few years. This is something that has raised concerns among regulatory agencies around the world. This is why these institutions decided to create different regulations for the crypto market to expand with proper rules and clear regulatory frameworks.
As per the report, Fowler has been finally charged with bank fraud, conspiracy to commit bank fraud and it also has been accused of operating an unlicensed money transmission business. Yosef received similar charges as Fowler.