iFinex, the parent company of both Bitfinex and Tether filed a discovery application last Friday which could allow it to gather evidence related to lost funds. iFinex had previously entrusted $880 million to Global Trade Solutions AG (also known as Crypto Capital) as part of the payment processing relationship that the two companies had, but the funds reportedly became inaccessible after Crypto Capital bank accounts from Poland, Portugal, the UK, and the US were seized or frozen by government agencies. If the application is approved, documents will have to be produced to obtain evidence that could help Bitfinex trace and recover the funds. Bitfinex is requesting a subpoena to take a deposition from Rondell Clyde Monroe, Vice President at TCA Investment Bancorp, one of the banks that is reportedly holding Bitfinex funds.
According to the application, filed in the US District Court for the Central District of Southern California by Bitfinex’s CFO Giancarlo Devasini, Bitfinex has been unable to access the $880 million since December 2018, but it plans to initiate legal proceedings in the aforementioned countries.
Along with the application, Devasini submitted a declaration stating that he was provided with documents that reveal that Crypto Capital transferred Bitfinex’s funds between multiple European and American banks instead of simply keeping them. “In order to demonstrate iFinex’s ownership of, and entitlement to, the various funds held in Poland, Portugal, and the United Kingdom, iFinex must be able to trace the funds deposited by its customers through the fund transfers between and among the various banking accounts operated by Crypto Capital,” said Devasini in his declaration. The company is also seeking to obtain information related to the use of the bank accounts involved, which are reportedly from TCA Bancorp.
According to reports, TCA Bancorp is in possession of $306M of Bitfinex funds. In addition to this, $355 million is held in Bank Spoldzielczy accounts in Poland, and the remaining $218 million is being held in three different Portuguese banks.