Two people have been charged in connection to providing illegal banking services to cryptocurrency exchanges. Charged by the FBI, IRS and the US Attorney Office, Reginald Fowler has been at the center of a fraud investigation by the USAO and is being detained as a “serious flight risk”.
Fowler’s current charges carry a maximum sentence of 30 years due in part to the failure to return $851 million. According to prosecutors:
“Detention is appropriate for the following reasons: (1) the nature of the instant offense and the strength of the evidence against Defendant; (2) Defendant’s financial resources and ties to other countries; (3) evidence that Defendant has already taken steps to impede this investigation; and (4) evidence of Defendant’s involvement in other criminal schemes. For these reasons, among others, Defendant is an atypical white collar defendant and poses a significant flight risk.”https://www.scribd.com/document/408446505/Crypto-Capital-Detention-Memorandum
Crypto exchange Bitfinex shareholder Zhao Dong has revealed details of the company’s reported plans to issue a native exchange token, which he claims will launch via a $1 billion initial exchange offering (IEO) in the coming days.
Zhao Dong, Bitfinex Shareholder revealed the company’s current plans to issue a native token through a $1 billion IEO in a relatively short amount of time. In an attempt to gain parity in USD backing, they will offer 1 billion tokens valued at $1 per token, with a minimum buyin of $1 million per customer.
Further claims have been made that there are already $500 million in allocation accounted for prior to the sale beginning. These are rapid decisions made to help cover the loss of 1:1 backing, currently estimated at only 74% according to documents released on April 30. The effectiveness and ability to execute this IEO will be seen very soon according to Bitfinex representatives.