U.S. authorities запросили a seven-year sentence for Arizona resident Reginald Fowler, who pleaded guilty to money laundering through the Panamanian processor Crypto Capital.
In a separate записке, prosecutors noted that during the period awaiting sentencing the defendant lost about $200,000 at Arizona casinos.
“With every dollar the defendant risked in casinos, the likelihood of victims being compensated declines. Therefore the government respectfully asks the court to add a bail condition prohibiting gambling,” the document says.
According to investigators, the defendant-founded Global Trading Solutions LLC worked with Crypto Capital to help cryptocurrency exchange clients exchange digital assets for cash.
In addition, Fowler provided several trading platforms, including Bitfinex, Binance, CEX.io and QuadrigaCX, with access to U.S. banks without the proper licenses.
Prosecutors sought a $740 million fine that Crypto Capital launders. Fowler allowed illicit proceeds to pass through the U.S. financial system, which, the government said, has long-lasting “material consequences.”
Prosecutors also sought $53 million in restitution for his involvement in the bankruptcy of the Alliance of American Football. The investigation says Fowler had promised the organization investments of $53 million and a credit line for $120 million, but later backed out, leading to the league’s collapse.
According to the defendant, he had no money, no bank accounts, and no lawyer.
“I have used up all my assets. I have put my property up as collateral. I cannot get a bank account. I have no income. I cannot access my deposits. And I want to find lawyers who understand this,” Fowler said during a November 2022 hearing.
As reported in April, on 10 New York law enforcement arrested former JPMorgan Chase and Deutsche Bank broker Rashon Russell on suspicion of digital-asset fraud. He urged investors to invest in altcoins, while spending their funds on gambling and debt repayment.