Bitfinex Files Subpoena to Recover $850M in Frozen Bank Accounts

Bitfinex Files Subpoena to Recover $850M in Frozen Bank Accounts 1

Bitfinex, a prominent bitcoin exchange, has filed an application to subpoena a former bank executive in an attempt to recover millions of dollars in frozen funds. 

Bitfinex filed its application on October 18, 2019, with a district court in the state of California. In this motion, Bitfinex singles out the bank TCA Bancorp’s former vice president, Rondell “Rhon” Clyde Monroe. In addition to Monroe’s testimony, Bitfinex is seeking a documented list of all of Monroe’s former communications with payment processor Crypto Capital.

Bitfinex and Crypto Capital have a complicated history. In April 2019, Bifinex faced legal action from the New York Attorney General’s Office over the allegation that Bitfinex was using $850 million acquired from Tether (which is owned by the same parent company, iFinex) to mask losses. 

In its recent subpoena application, Bitfinex claims that these losses were the result of theft or criminal mismanagement by Crypto Capital. Without signing a formal agreement, Bitfinex entrusted $880 million with Crypto Capital and since then has been unable to access it. In a bid to avoid disclosing these difficulties to its users, Bitfinex initiated the scheme to “borrow” money from Tether.

The Purpose of the Subpoena

In October 2019, a group of Bitfinex investors formed a class action lawsuit against the company for this alleged cover-up, collectively seeking a whopping $1.4 trillion in damages. That suit is ongoing.

The goal of Bitfinex’s new subpoena, as part of a bid to recover these missing funds, is to try and prove its theory that Monroe used his position at TCA Bancorp to transfer Bitfinex’s money away from Crypto Capital. The subpoena application alleges that Crypto Capital told Bitfinex that the funds were being “held up” by foreign regulators in Portugal, Poland and the U.K. in April 2018 and that the company has not seen the funds since. 

Bitfinex is pursuing the subpoena in an effort to track these funds.

“Thus, in order to demonstrate Applicant’s ownership of and entitlement to the various funds being held in Poland, Portugal, and the United Kingdom, Applicant must be able to trace the funds deposited by its customers through the fund transfers between and among the various banking accounts operated or used by Crypto Capital,” the subpoena application reads.

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews



bitcoin
Bitcoin (BTC) $ 61,922.00
ethereum
Ethereum (ETH) $ 3,740.27
binance-coin
Binance Coin (BNB) $ 477.11
tether
Tether (USDT) $ 0.999381
cardano
Cardano (ADA) $ 2.12
xrp
XRP (XRP) $ 1.08
solana
Solana (SOL) $ 156.17
polkadot
Polkadot (DOT) $ 40.74
dogecoin
Dogecoin (DOGE) $ 0.253779
usd-coin
USD Coin (USDC) $ 0.99988
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 61,922.00
ethereumEthereum (ETH)
$ 3,740.27
tetherTether (USDT)
$ 0.999381
bitcoin-cashBitcoin Cash (BCH)
$ 603.58
litecoinLitecoin (LTC)
$ 182.29
bitcoinBitcoin (BTC)
53.385,12
ethereumEthereum (ETH)
3.224,62
tetherTether (USDT)
0,861601
bitcoin-cashBitcoin Cash (BCH)
520,37
litecoinLitecoin (LTC)
157,16
bitcoinBitcoin (BTC)
45,050.55
ethereumEthereum (ETH)
2,721.18
tetherTether (USDT)
0.727087
bitcoin-cashBitcoin Cash (BCH)
439.13
litecoinLitecoin (LTC)
132.62

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Behind The Scenes: How this Crypto Community Responded to + $50m Hack
October 18, 2021
Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021
Cryptocurrency Exchanges
Cryptocurrency Exchanges and the Plague of Scams and Bans
June 29, 2021

Blockchain/Cryptocurrency Questions and Answers

ICo Presale
The Science Behind ICO Presales…
October 14, 2021
Beginner’s Guide to Investing in Cryptocurrency
August 9, 2021
Short-Sell Cryptocurrency
How to Short-Sell Cryptocurrency: A Brief Overview
July 17, 2021
Klaytn
What Is Klaytn (KLAY) And How Does It Work?
July 16, 2021
Cryptocurrencies
Our Crypto Roundup Interview Asks- Do Cryptocurrencies Have a Future?
July 15, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin61,938 0.39 % 1.39 % 13.21 %
Ethereum3,740.6 1.02 % 2.00 % 9.02 %
Binance Coin478.23 0.45 % 2.47 % 18.28 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Cardano2.130 0.52 % 1.46 % 3.21 %
XRP1.080 0.78 % 3.59 % 4.68 %
Solana156.66 0.49 % 2.46 % 6.07 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
Dogecoin0.2552 0.39 % 7.71 % 11.29 %
USD Coin1.000 0.14 % 0.20 % 0.17 %

bitcoin
Bitcoin (BTC) $ 61,922.00
ethereum
Ethereum (ETH) $ 3,740.27
binance-coin
Binance Coin (BNB) $ 477.11
tether
Tether (USDT) $ 0.999381
cardano
Cardano (ADA) $ 2.12
xrp
XRP (XRP) $ 1.08
solana
Solana (SOL) $ 156.17
polkadot
Polkadot (DOT) $ 40.74
dogecoin
Dogecoin (DOGE) $ 0.253779
usd-coin
USD Coin (USDC) $ 0.99988