Man Recently Arrested for Fraud is Connected to the Bitfinex/Tether and QuadrigaCX Shadow Banking Firm
Arizonan man Reginald Fowler, who has been arrested for charges relating to bank fraud and operating an unlicensed money exchange, appears to be connected to the same shadow banking firm used not only by Bitfinex in the recent Tether (USDT) scandal but also the recently defunct QuadrigaCX exchange.
The connection appears to come from a Colorado-based company that Fowler started called Global Trading Solutions LLC. Another company based in Switzerland with a strikingly similar name, Global Trade Solutions AG, is a company that is reportedly presided over by Crypto Capital Co. (CCC) owner Ivan Manuel Molina Lee. Crypto Capital Co. is the same company which apparently lost or stole $850 million in Bitfinex client funds which resulted in Bitfinex being accused by the New York Attorney General for attempting to cover up the loss with Tether tokens.
The news follows accusations in June last year that Bitfinex was using Tether tokens to manipulate the cryptocurrency market during the December 2017 bull run. Fowler also apparently owns or was the owner of an address in Chandler, Arizona, where deposits from Bitfinex were allegedly being sent.
In January this year, BitcoinExchangeGuide.com revealed that Panamanian-based Crypto Capital Co. was functionally insolvent and yet still represented five exchanges, including Bitfinex and Quadriga CX. The recently defunct Quadriga CX remains embroiled in a court battle over the loss of funds following the mysterious disappearance of founder Gerald Cotten, who reportedly died in India last December.
Way back in 2005, an ESPN article reported on how a Reginal Fowler from Arizona has been sued more than three dozen times over 15 years. At the time, Fowler was attempting to purchase the American Football team the Minnesota Vikings but it would appear he never managed to raise all the money and only became a limited partner. He claimed to own $300 million in real estate in Arizona and Colorado which presumably would be used as collateral for the purchase.
In 2014, Fowler lost control of his companies when U.S. Bank obtained a judgment against him claiming his companies had accumulated $6 million in unpaid debt and at least $53 million in debts to other banks.
Full details surrounding the scandal continue to be released and any specific connections between all involved are yet to be officially confirmed. However, it would seem there is certainly more to come and we will continue to update the story as details emerge.