The President of Crypto Capital was arrested by Polish police in connection with money-laundering, Polish media reports.
Ivan Manuel Molina Lee is accused of being part of an international drug cartel and laundering cash using Bitfinex.
A statement from Polish investigators said: “In the course of the investigation, five persons were charged with committing offences.
“As part of the European Arrest Warrant, on 31 March 2019, one of the suspects, Ivan Molina Lee, was arrested on Greek territory… suspected of taking part in organised criminal crime on an international scale and of laundering money from criminal activities.”
Earlier this year the New York Attorney General’s office began a probe after it was alleged that Bitfinex had used Crypto Capital to engage “in a cover-up to hide the loss of $850 million in client and corporate funds”.
Attorney General Lelita James said: “Our investigation has determined that the operators of the ‘Bitfinex’ trading platform, who also control the ‘tether’ virtual currency, have engaged in a cover-up to hide the apparent loss of $850 million dollars of co-mingled client and corporate funds.
“New York state has led the way in requiring virtual currency businesses to operate according to the law. And we will continue to stand-up for investors and seek justice on their behalf when misled or cheated by any of these companies.”
Bitfinex is under investigation in New York
Bitfinex denies the allegations.
It claimed the filings were “written in bad faith and riddled with false assertions”.
In an official statement, the exchange countered with: “On the contrary, we have been informed that these Crypto Capital amounts are not lost but have been, in fact, seized and safeguarded.
“We are and have been actively working to exercise our rights and remedies and get those funds released.
“Sadly, the New York Attorney General’s office seems to be intent on undermining those efforts to the detriment of our customers.”
Earlier this month the NYAG’s office said that Bitfinex should be getting ready to provide documents in relation to the case.
Lawyers representing Bitfinex say the NYAG failed to cite any authority supporting its request and also take issue with the allegation that Bitfinex was stalling on court-ordered document production.
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