A crypto scam that involved the former minority owner of the National Football League’s Minnesota Vikings has recently been exposed, and the repercussions are severe. 

Prosecutors are calling for a seven-year prison sentence and a forfeiture of over $740 million after the accused admitted to aiding cryptocurrency exchanges in evading money-laundering regulations. 

Former Vikings Owner Faces Lengthy Prison Sentence For Crypto Scam

Former Minnesota Vikings minority owner, Reginald Fowler, is facing a prison sentence for charges related to bank fraud, illegal money transfers, and conspiracy. The charges stem from his alleged involvement in shadow banking practices through an unlicensed money-transmitting business. 

Ahead of the scheduled sentencing of Fowler on April 20, the US District Attorney, Damian Williams, filed a petition. In the request, Williams called for a minimum of seven years imprisonment but suggested a wider range of 15 to 20 years to reflect the severity of the offense. 

This case underscores the importance of accountability in financial transactions and the consequences of operating outside the law.

Fowler Admits To Crypto Scam Involving $750 Million

Fowler has previously admitted to participating in a crypto scam that involved providing shadow banking services to unlicensed cryptocurrency firms. 

According to court filings, between February and October 2018, Global Trading Solutions (GTS) and Fowler’s company, Crypto Capital, processed roughly $750 million in cryptocurrency transactions, allowing unlicensed firms to unlawfully access the U.S. banking system. 

In 2019, Ivan Manuel Molina Lee, who served as the leader of Crypto Capital, was arrested under suspicion of engaging in money laundering activities and having connections to drug cartels.

Crypto Capital And Bitfinex Controversy

Crypto Capital was also involved in a high-profile court case regarding Bitfinex’s failure to disclose the loss of $850 million in customer funds. By February 2022, Bitfinex and its affiliated companies had reached a settlement in which they were directed to discontinue trading activities in New York and pay $18.5 million in civil fines.

Fowler was accused of acting as an unlicensed money transmitter and deceiving financial institutions, which led to his arrest in 2019. Despite initially pleading not guilty to all charges and being released on $5 million bail, Fowler changed his plea to guilty in April 2022.

The Impact Of Crypto Scams

The case highlights the need for greater regulation and oversight in the crypto industry, as investors are increasingly vulnerable to fraudulent schemes.

The involvement of major players in the industry also underscores the importance of conducting proper due diligence on all parties involved in financial transactions, regardless of their reputation or position.

-Featured image from CoinGeek