US Attorney seeks 7-year sentence for exec in crypto shadow banking case

A agelong condemnation is being sought by United States prosecutors for an enforcement successful a crypto shadiness banking lawsuit that has dragged connected for 5 years.

On April 18, U.S. District Attorney Damian Williams filed a petition successful beforehand of the sentencing of Reginald Fowler which is scheduled for April 20.

Fowler, the erstwhile number proprietor of the Minnesota Vikings NFL team, was originally arrested and charged with slope fraud, amerciable wealth transfers and conspiracy connected to shadiness banking practices successful 2019 implicit his alleged cognition of an unlicensed wealth transmitting business.

On behalf of the government, Williams is requesting a condemnation of astatine slightest 7 years imprisonment. However, he suggested a scope of 15 to 20 years to bespeak the seriousness of the offense.

Extract from the filing successful the United States v. Reginald Fowler case. Source: CourtListener

Fowler established a steadfast called Global Trading Solutions (GTS) successful 2018 nether the umbrella of the Panama-based Crypto Capital Corp, an alleged crypto shadiness bank.

He was accused of acting arsenic an unlicensed wealth transmitter and deceiving fiscal institutions. Through Crypto Capital, helium allegedly provided shadiness banking services to respective crypto exchanges including Bitfinex, Binance, CEX.io and QuadrigaCX.

Between February and October 2018 GTS and Crypto Capital processed astir $750 cardinal successful cryptocurrency transactions providing unlawful entree to the U.S. banking strategy for unlicensed crypto firms, according to the filing.

Ivan Manuel Molina Lee, the caput of Crypto Capital, was arrested successful 2019 connected suspicion of wealth laundering and being progressive successful a Columbian cause cartel.

Crypto Capital was a cardinal subordinate successful the tribunal case regarding Bitfinex’s nonaccomplishment to disclose the nonaccomplishment of $850 cardinal successful lawsuit funds. That lawsuit was settled successful February 2022 with the firms ordered to wage $18.5 cardinal successful civilian penalties and unopen down New York trading operations.

Related: Crypto Capital's NFL suspect unfastened to blameworthy plea, but not for $371M

In 2020 Fowler pleaded not blameworthy to each charges and was released connected $5 cardinal bail, however, helium reentered a blameworthy plea successful April 2022. As his sentencing approaches Williams concluded:

“Reginald Fowler has committed superior crimes. Only a important play of incarceration, of astatine slightest 84 months imprisonment, could bespeak that seriousness, beforehand respect for the law, and spend capable deterrence.”

In September 2022, Fowler requested a six-month adjournment citing a superior aesculapian condition.

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