Indictments Issued for Two Individuals for Running “Shadow Banking” Operation

Indictments Issued for Two Individuals for Running “Shadow Banking” Operation 1

U.S. Attorney’s office for the Southern District of New York has charged two individuals for providing “shadow banking” services to crypto exchanges.

According to a statement by Geoffrey S. Berman, the U.S. Attorney for the Southern District of New York, published on April 30, 2019, “Reginald Fowler and Ravid Yosef allegedly ran a shadow bank that processed hundreds of millions of dollars of unregulated transactions on behalf of numerous cryptocurrency exchanges.”

The D.A. also claimed that both individuals ran an organization that managed to evade the Anti-Money Laundering (AML) laws that govern the operations of licensed financial institutions.

The Department of Justice also released court documents, claiming that the two worked for various companies that provided currency banking services to crypto exchanges and then went on to establish and operate an unlicensed money service between February and October 2018. Prosecutors believe that during that period, the two of them created and used several bank accounts with different financial institutions.

To get the banks to open these accounts, Fowler and Yousef were said to have made several misleading statements to the banks, claiming that their accounts would be used to conduct “real estate transactions,” while actually using them to transmit funds for a cryptocurrency-related money transmitting agency.

To cover up the nature of their business, they allegedly went on to falsify electronic wire payment instructions as well.

An investigation into the business, which was conducted by the U.S. Internal Revenue Service (IRS) and the FBI, discovered that the suspects operated two bank accounts under the company name Global Trading Solutions LLC with HSBC Bank USA and HSBC Securities USA/Pershing LLC.

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



Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Millions in Cryptocurrency Stolen by Scammers in the Last Month According to Tenable Research
November 24, 2021
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

Blockchain/Cryptocurrency Questions and Answers

Crypto casinos
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
Cryptocurrency
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
Ethereum
The Unconventional Guide to Ethereum
October 28, 2021
ICo Presale
The Science Behind ICO Presales…
October 14, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin56,082 0.41 % 0.63 % 4.78 %
Ethereum4,485.2 1.08 % 1.09 % 0.68 %
Binance Coin609.55 1.04 % 1.84 % 4.48 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Solana224.75 2.89 % 1.45 % 7.13 %
Cardano1.620 0.64 % 4.31 % 3.64 %
XRP0.9621 0.49 % 1.09 % 7.72 %
USD Coin1.000 0.14 % 0.20 % 0.17 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
Dogecoin0.2215 0.68 % 1.42 % 7.23 %

bitcoin
Bitcoin (BTC) $ 56,249.00
ethereum
Ethereum (ETH) $ 4,517.98
binance-coin
Binance Coin (BNB) $ 613.21
tether
Tether (USDT) $ 1.00
solana
Solana (SOL) $ 228.73
cardano
Cardano (ADA) $ 1.63
xrp
XRP (XRP) $ 0.967889
usd-coin
USD Coin (USDC) $ 1.00
polkadot
Polkadot (DOT) $ 35.67
dogecoin
Dogecoin (DOGE) $ 0.206889