Former footballer Reggie Fowler, who is alleged to be the operator of Crypto Capital Corp., may face at least seven years in prison. This comes as U.S. prosecutors have requested a court to sentence Fowler for charges of bank fraud, wire fraud and conspiracy. Fowler pleaded guilty to these charges in April last year, after rejecting a plea deal two years prior. The case involves Crypto Capital Corp., a shadow bank that lost hundreds of millions of exchange platform Bitfinex’s money. Prosecutors have requested a reduced sentence for Fowler, compared to the typical recommended 15-20 years for similar crimes, and an order of forfeiture upwards of $740 million.
According to court documents filed on Wednesday, prosecutors have stated that “Reginald Fowler has committed serious crimes. Only a significant period of incarceration, of at least 84 months’ imprisonment, could reflect that seriousness, promote respect for the law, and afford adequate deterrence.” Prosecutors have also requested the court to issue an order of restitution amounting to $53 million on behalf of the Alliance of American Football (AAF), which they say was “a victim of Fowler’s wire fraud.”
Fowler was indicted in April 2019 for allegedly operating a “shadow bank” that processed hundreds of millions of dollars of unregulated transactions on behalf of cryptocurrency exchanges. He was charged with bank fraud, conspiracy to commit bank fraud and wire fraud, and pleaded not guilty at the time. However, Fowler later changed his plea to guilty in April 2020.
The case has been ongoing for several years, with Bitfinex suing Crypto Capital Corp. in 2019 for allegedly losing $850 million of its funds. The exchange claimed that Crypto Capital Corp. was holding its funds, but had failed to return them. Fowler was later arrested in April 2019, accused of being the mastermind behind the operation.
The sentencing hearing for Fowler is set to take place on 20 July. If the court agrees to the prosecutors’ request, Fowler could face a significant prison sentence and forfeiture of a large sum of money. This case highlights the importance of regulation in the cryptocurrency industry, as unregulated transactions can lead to fraudulent activities and losses for investors and exchanges alike.
