WARSAW, Poland—Crypto Capital President Ivan Manuel Molina Lee has been arrested by Polish authorities and accused of being part of an international drug cartel and involved in its money-laundering operations using Bitfinex, The Block reported.
Crypto Capital was a company with which Bitfinex allegedly entrusted $850 million, money the exchange said it was unable to access later. To cover the loss, the exchange conducted a $1-billion token sale in May.
The Block explained the Polish Ministry of Justice had seized bank accounts in name of Crypto SP. Z O.O. The seized funds, which amount to $350 million, reportedly belonged to Crypto SP. Z O.O. and NESP SP. Z O.O., two companies likely affiliated with Crypto Capital and Molina Lee, according to several financial documents, The Block said. The seizure was a part of an anti-money laundering operation conducted by the Polish authority.
Additional Allegations
Molina Lee was sought by Polish authorities in connection with the seized funds, which was “about laundering money from Colombian drug cartels through the cryptocurrency exchange,” The Block said.
According to the National Public Prosecutor’s Office, The money-laundering operation was “the largest security [seizure] in the history of the Polish prosecutor’s office against forfeiture.”