USAG charges two individuals for 'providing shadow banking services' to crypto exchanges; including Bitfinex

The Block • April 30, 2019, 3:53PM EDT
UPDATED: April 30, 2019, 5:32PM EDT
The Block

The crypto crackdown continues. 

The U.S. Attorney General's Office has charged two individuals for offering so-called shadow banking services to unnamed cryptocurrency exchanges, according to an announcement out April 30. 

As per the press release, Ravid Yosef and Reginald Fowler were hit with charges of "bank fraud and operating an unlicensed money transmitting business." According to a court document filed in the Southern District of New York, the duo opened up accounts to transfer funds to crypto exchanges under Global Trading Solutions. 

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Readers of The Block might recall the name. As The Block's Larry Cermak first reported, that firm served as a banking partner with crypto exchange Bitfinex, which was issued a lawsuit recently by the New York Attorney General's Office. Additionally, Global Trading Solutions, LLC is also affiliated with Global Trade Solutions AG, which is the parent company of Crypto Capital, the payment processing firm that was entangled in the aforementioned Bitfinex lawsuit. 

 

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