Few companies within the currency space have endured quite as much controversy as Bitfinex. First, Bitfinex was exposed in a New York Attorney General‘s office investigation for having colluded with Tether to hide hundreds of millions of dollars in losses by being given access to Tether’s reserves and are still under suspicion from both law enforcement and those within the industry and though they deny wrongdoing, the controversies continue to pile up.


On October 25, 2019, Bitfinex found themselves yet again defending themselves from allegations after the arrest of Crypto Capital Exchange’s presidents. Their recent statement states that they have been the victim of fraud and denied any allegations of illegal activity connected to Crypto Capital.

No Wrongdoing 

In light of the arrest, Bitfinex has come out to state that any allegation that Crypto Capital Exchange laundered any money on their behalf is false. This is because Crypto Capital is their former payment processor and Bitfinex is trying to distance themselves from any more controversy since their president was arrested.

“This week’s developments do nothing to affect or otherwise deter Bitfinex’s claims to funds in Poland or anywhere else. We will continue to work to recover all funds for and on behalf of our stakeholders,” the statement said. 

The arresting question was of Ivan Manuel Molina Lee, who was detained by Polish authorities under suspicion of using cryptocurrency for money laundering for drug cartels. The detainment took place under the basis of a European Arrest Warrant in connection to $350 million that was previously seized by the Polish Ministry of justice.

Crypto capital has worked as the payment processor of some of the biggest crypto platforms in existence such as Binance, Kraken and Bitfinex. This month Bitfinex filled an application of discovery to gain access to $880 million in funds which were tied up in Crypto Capital assets. Apparently, the company had received false representations from Crypto Capital and this has led to them losing a large amount of money.

“Among those misrepresentations, Crypto Capital regularly referred to its integrity, banking expertise, robust compliance programme and financial licences. This was designed to assure us that Crypto Capital was capable of handling Bitfinex’s transactions,” Bitfinex said.

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