Crypto Capital Defendant Pleads Guilty to Fraud

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Reginald Fowler, resident in the US state of Arizona, has pleaded guilty to providing shadow banking services through Panamanian processing company Crypto Capital, The Block reports.

The defendant almost confessed to a number of charges at the end of 2019. However, he later abandoned the plans due to a condition under which the authorities could recover $371 million from him.

During a remote hearing held yesterday, Fowler pleaded guilty to all charges, including conspiracy and illegal transfers. He faces a maximum sentence of 90 years in prison. The final verdict will be known on August 30.

Crypto Capital is a key player in the Bitfinex v. New York State case. The exchange transferred $850 million for storage to this service. As a result, it lost access to funds, and the authorities accused the platform of trying to hide the loss and make up for the deficit with the funds of the issuer of the stablecoin Tether affiliated with it.

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