The District Attorney for the Southern District of New York has filed charges against two individuals for reportedly shadow banking several cryptocurrency businesses. An announcement made on April 30 named an Israeli woman and an Arizona man as perpetrators of the crime.
DA Geoffrey S. Berman has charged Reginald Fowler and Ravid Yosef. Fowler has been arrested for bank fraud and allegedly running a money transferring company without a license. Yosef was named as his co-conspirator. She’s also accused of bank fraud but currently remains at large.
The accused reportedly worked in 2018 for various associated businesses that supplied fiat currency bank services to crypto exchanges. At the time, Fowler made several false statements to different banks in order to open accounts that were later used to accept deposits from people buying digital currency. Both Yosef and Fowler were said to have faked wire payment information to hide the truth about their business.
In his statement, DA Berman said that Fowler and Yosef’s organization circumvented the security protocols on anti-money laundering that were mandated of licensed institutions through their use of “lies and deceit.” Berman added that the said protocols were put in place to ensure that America’s financial system was not utilized for criminal activities.
District Attorneys have finally caught on to the ways crypto and bitcoin are being used for nefarious purposes and are taking steps to address the issue.
In April, Manhattan DA Cyrus R. Vance, Jr. prosecuted a group who reportedly managed stores that sold and shipped thousands of counterfeit drugs on the Dark Web and laundered millions using bitcoin (BTC). It was also reported in the same month that Jacob Burrell Campos, a LocalBitcoins trader, was sentenced to two years in federal prison.