The United States Attorney for the Southern District of New York, Damian Williams, has asked for a seven-year prison term for Reginald Fowler, the accused CEO in a crypto shadow banking company.
Fowler’s legal proceeding has been ongoing for five years, according to a file from April 18, and his sentencing was set on April 20.
Multiple Illicit Activities
Williams claimed that Fowler was detained in 2019 and prosecuted for illicit transfer of funds, fraudulent transactions with banks, and conspiracy connected to shadow banking practices in an unregistered financial transfer firm, in a letter of request to US District Judge Andrew Carter.
The U.S. attorney has also asked for a sentence between 15 and 20 years to underscore the gravity of the crime and the necessity to foster legal respect.
How Did the Unauthorized money-transmitting Company Start?
Incidentally in 2018, Fowler introduced Global Trading Solutions (GTS) under the guidance of the purported cryptocurrency shadow bank Crypto Capital Corp, set abroad. They all operated as an unauthorized money-transmitting company, giving cryptocurrency exchanges unauthorized access to the US financial system.
GTS and Crypto Capital handled almost $750 million in cryptocurrency transactions between the months of February and October 2018 with a number of companies, including Bitfinex, Binance, CEX.io, and QuadrigaCX.
Guilty or not guilty?
Fowler is accused of misleading financial institutions and allowing criminals to use his platform to launder their money. Fowler, who had first pleaded not guilty to all accusations in 2020, was reportedly freed on a $5 million bond in 2022 after changing his plea to guilty.
DoJ’s Tough Verdicts on Crypto Scammers
Meanwhile, the US Department of Justice (DoJ) in February, decided that Randall Crater, an operator of the fraudulent cryptocurrency scam known as “My Big Coin,” be sentenced to 100 months in jail.
The fraudster misled investors into thinking that it controls a marketplace where tokens may be exchanged for fiat money and other digital currencies. However, the Commodity Futures Trading Commission (CFTC) discovered his scams.
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