Former minority owner of the Minnesota Vikings football team, Reginald Fowler, has been sentenced to seven years in prison and will forfeit over $740 million for his role in assisting cryptocurrency exchanges to bypass anti-money laundering regulations. The information was revealed by prosecutors to a federal judge in New York, according to a recent Bloomberg report.
Fowler, who is scheduled to be sentenced by a United States District Judge in Manhattan, entered a guilty plea to all five charges against him in April 2022. The charges included bank and wire fraud and conspiracy to run an unauthorized money transmission company.
Prosecutors had accused Fowler of forming Global Trading Solutions LLC, which collaborated with another business called Crypto Capital to enable the trading of digital currencies for fiat currency. Fowler reportedly created many bank accounts in the United States by fraudulently stating that they were for real estate investment transactions when, in reality, their actual purpose was to conduct cryptocurrency transactions.
Fowler’s criminal activities were not limited to aiding cryptocurrency exchanges to evade money-laundering regulations. According to the United States Department of Justice, Fowler defrauded the Alliance of American Football (AAF) by falsely claiming that millions of dollars belonging to Crypto Capital and/or Global Trading Solutions customers were his assets. Fowler used these misrepresented funds to secure his investments in the AAF, which led to his acquisition of a significant investment stake in the organization. However, Fowler could not fund his investment in the AAF, and his fraudulent activities ultimately contributed to the organization’s downfall.
Fowler’s case highlights the importance of following anti-money laundering regulations in the cryptocurrency industry. Cryptocurrency exchanges must ensure that they are fully compliant with all relevant regulations to avoid facing legal consequences. The case also shows that fraudulent activities in the cryptocurrency industry can have far-reaching consequences beyond the industry itself.
It is unclear at this time what impact Fowler’s sentence will have on the cryptocurrency industry. However, it is likely that the case will serve as a warning to other individuals and companies involved in the industry to ensure that they are fully compliant with all relevant regulations.
Overall, Fowler’s case is a reminder that the cryptocurrency industry is still relatively new and rapidly evolving. As such, it is essential that all participants in the industry remain vigilant and proactive in ensuring compliance with all relevant regulations. Failure to do so can result in severe legal consequences, as demonstrated by Fowler’s case.