US prosecutors are looking for a prolonged sentence for Reginald Fowler, a former minority proprietor of the Minnesota Vikings NFL group, over his alleged involvement in shadow banking practices via Crypto Capital Corp, an alleged crypto shadow financial institution. Fowler’s sentencing is scheduled for April 20, following his arrest in 2019 and subsequent cost with financial institution fraud, unlawful cash transfers, and conspiracy related to his operation of an unlicensed cash transmitting enterprise.
In a request filed on April 18, US District Legal professional Damian Williams requested a sentence of a minimum of seven years imprisonment for Fowler, with a advised vary of 15 to twenty years to replicate the seriousness of the offense. Williams argued that Fowler’s actions as an unlicensed cash transmitter and his alleged deception of economic establishments warranted a major penalty.
Fowler established a agency referred to as World Buying and selling Options (GTS) in 2018 below the umbrella of the Panama-based Crypto Capital Corp, an alleged crypto shadow financial institution. By way of GTS and Crypto Capital, Fowler is alleged to have supplied shadow banking companies to a number of crypto exchanges together with Bitfinex, Binance, CEX.io, and QuadrigaCX. Between February and October 2018, GTS and Crypto Capital processed roughly $750 million in cryptocurrency transactions, offering unlicensed crypto companies with illegal entry to the U.S. banking system, in accordance with the submitting.
The usage of shadow banking practices by Crypto Capital and GTS got here to gentle in the course of the courtroom case relating to Bitfinex’s failure to reveal the lack of $850 million in buyer funds. Fowler and Crypto Capital have been recognized as key gamers within the case, which was settled in February 2022 with the companies ordered to pay $18.5 million in civil penalties and shut down New York buying and selling operations.
The alleged involvement of Fowler and Crypto Capital in shadow banking practices highlights the dangers related to unlicensed cash transmitting companies and the potential for unlawful actions to happen inside the crypto business. The case additionally underscores the necessity for stronger regulation and oversight of crypto exchanges and shadow banking practices to stop illicit actions and make sure the integrity of the monetary system.
