Bitfinex denies links to Colombian drug money
Assets seized by Polish police are reportedly linked to the cryptocurrency exchange’s account in the country.
Following a couple of days of rumours, Bitfinex – currently the fifth largest cryptocurrency exchange based on volume, according to Coinmarketcap – has been moved to deny it is embroiled in an investigation regarding money laundering by Colombian criminal organisations.
The UK’s Daily Express is reporting Bitfinex’s statement, denying that it is involved in an investigation regarding money laundering by two shell companies based in Colombia, at least one of which is rumoured to be linked to it.
Last year it was reported that Bitfinex secured a foothold in Europe by obtaining a Polish bank account, listed under the name CRYPTO SP. Z.O.O (SP. Z.O.O. means limited company). This company was part of what was described as a “complex structure to move funds within the banking system and to their exchange,” involving another company – Crypto Capital Corp – and what appeared to be nominee director, whose name was being used to avoid the actual directors of the companies having to reveal their identities.
Polish prosecutors apparently seized 1.27 billion Polish zlotys (almost £265m) last week from two bank accounts belonging to the two companies suspected of being implicated in the money laundering scheme – one of these, according to unconfirmed reports – was CRYPTO SP. Z.O.O. The reason for the seizure is apparently that account’s links to a scam by contractors in the Democratic Republic of Congo, which then seems to have led investigators to look into its possible links to Colombian drug cartels that could have been depositing money in the accounts in exchange for crypto.
The Express quotes Bitfinex as saying “it had undertaken an ‘internal investigation of its international organisation’ to determine whether its own work had in any way been connected to that of two shell companies accused of defrauding the Belgian government [the aforementioned DRC scam] and laundering funds in Colombia.”
Apparently, that concluded “these allegations are untrue and unfounded”. The statement went on to say that “Bitfinex has not been party to any official investigation launched in any jurisdiction globally on the basis of the allegations reported in the Polish media.”
No charges are currently on file. Though, again, according to reports, the investigations are ongoing. It must be noted that nothing official has linked the investigation to CRYPTO SP. Z.O.O. or Bitfinex, so we’ll have to see how this one pans out. The exchange was under the spotlight in the US late last year, without ultimately being charged with anything – at least thus far.
