Update: Bitfinex claimed they have become a victim of fraud and they will seek recovery of shareholders’ funds. The accusations that money was laundered at the behest of Bitfinex and its clients are false.
Yesterday the president of Crypto Capital, Ivan Manuel Molina Lee, was arrested by Polish authorities on the basis of an European Arrest Warrant issued by the Warsaw prosecutor's office which accuses him of being involved in an international drug cartel and money laundering via Bitfinex, reads the local news report. Molina Lee has been taken to Warsaw for questioning.
The arrest is connected with “the largest security [seizure] in the history of the Polish prosecutor’s office” when authorities seized funds for about $350 million from bank accounts in the name of Crypto SP. Z O.O, which is reportedly connected to Panama-based company Crypto Capital and its president.
Crypto Capital is the company that appeared in the midst of the Tether/Bitfinex scandal. According to the court filing from April 25, more than $850 million of Bitfinex funds were lost by the payment processor Crypto Capital. In May, Bitfinex conducted a $1 billion token sale to cover losses after Crypto Capital potted the “entrusted” money.
Crypto Capital was used by other major cryptocurrency companies, like Binance, Kraken and BitMEX.