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In an effort to set the records straight, the controversial crypto exchange Bitfinex released a statement on Friday, attempting to disengage itself from the Crypto Capital money laundering saga.
The Hong Kong-based cryptocurrency firm made it crystal clear that it is, in fact, a victim of the money laundering case. This is in contrast to what the public thought earlier (and some might still believe).
Backtrack a little to last week, the police scored yet another one for the good guys when it apprehended the top executive of Crypto Capital, Ivan Manuel Molina Lee, who is allegedly the mastermind behind the massive money laundering case that has been the order of the day in the firm.
The principal of the Polish based crypto company, Ivan Manuel Molina Lee was arrested in Greece and last week he was extradited to Polish authorities to answer to money laundering charges leveled against him.
Molina Lee is being arraigned for aiding money laundering ventures amounting to about $390 million from illegal sources including Colombian drug cartels. Bitfinex also reported that the payment processor mishandled up to $880 million USD of its funds.
Digging down the rat hole, the police traced the dirty dealing to yet another principal in the firm by the name Oz Yosef (also known as Oz Joseph). Joseph is currently answering to three criminal counts by the United State’s Attorney for the Southern District of New York.
Having been in bed with Crypto Capital for several years, it is no wonder anyone would think that Bitfinex and its sister cryptocurrency Tether (USDT) have been in on the game all this time. Contrary to the general opinion, Bitfinex proclaims it has disassociated itself from Crypto Capital, stating emphatically that it is a victim, not a conspirator.
The crypto firm further expressed its pain and disappointment in the turn of events. It is pained by the fact that Crypto Capital misrepresented its “integrity, banking expertise, robust compliance programme and financial licences.”
Bitfinex’s statements try to stress the firm’s innocence further, calling all otherwise claims false as the company promises to pursue the trail of the money to the last. Bitfinex’s announcement reads:
“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. 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.”