Ivan Manuel Molina Lee was apprehended in Poland, on accusations of money-laundering.
The president of CryptoCapital was arrested by Polish law enforcement, on accusations of money-laundering. Ivan Manuel Molina Lee, who was at large despite the ongoing investigation against CryptoCapital, was finally arrested on 24 October.
Polish authorities recalled that CryptoCapital is held by a company established in Panama, with a $5,000 capital. CryptoCapital provided banking for the Bitfinex exchange, via Bank Spółdzielczy in Skierniewice, reportedly handling as much as $1.5 billion over the course of a day.
The news of the arrest happen days after Bitfinex issued a subpoena to gain access to some of the funds of CryptoCapital, which are blocked during the investigation. Polish authorities claimed the activities of the shadow banking institution including laundering funds for Columbian drug cartels through crypto-related entities. The authorities also mentioned Bitfinex in relation to the laundering of dirty finds. The Polish prosecution mentioned this is the biggest money-laundering case it is investigating, with international cooperation, including the forces of Europol and US-based law enforcement.
CryptoCapital is still the holder of $850 million allegedly belonging to Bitfinex traders. The exchange has not disclosed the nature of the funds, although it recently introduced strict KYC procedures.
The new arrest may bring potential testimonies about the activity of CryptoCapital. To patch the hole in its finances, Bitfinex established the Unus Sed Leo (LEO) token, and also took out a loan from Tether, Inc. Currently, it is possible that the USDT asset is still not backed completely by fiat in a bank. Bitfinex also faces an investigation from the New York Attorney General, as well as a class-action lawsuit for manipulating the price of BTC.
Currently, Bitfinex operates at a fraction of its full capacity, but Tether, the other company related to iFinex, is highly active within the crypto space. During the latest drop in Bitcoin (BTC) prices, whale watching bots immediately noticed heightened transaction activity from Tether.