• The United States has confiscated $58 million from a bank account held by Deltec Bank & Trust, based in the Bahamas.
• The account was allegedly involved in laundering the profits from cryptocurrency-related investment fraud and other fraudulent schemes.
• Federal law enforcement officials have identified a minimum of 74 shell companies suspected of receiving funds derived from wire fraud, which Deltec Bank is accused of laundering on behalf of its clients.
US Law Enforcement Chasing Money Laundering Case
The United States has confiscated at least $58 million from its accounts held at Mitsubishi Bank as part of an ongoing investigation into money laundering activities connected to cryptocurrency related investment frauds and other fraudulent schemes.
Deltec Bank & Trust Accused Of Laundering Funds
Authorities accuse Deltec Bank & Trust, based in the Bahamas, of laundering funds generated from crypto scams and other fraudulent activities. Federal law enforcement officials have identified a minimum of 74 shell companies suspected of receiving funds derived from wire fraud, which Deltec is accused of laundering on behalf of its clients.
Connections With Defunct Crypto Exchange FTX
This is not the first time that Deltec’s alleged involvement with money laundering has come to light; it had deep connections with now defunct crypto exchange FTX. Its Chairman Jean Chalopin reportedly used his friendship with Sam Bankman-Fried (SBF), CEO of FTX, to secure a $50 million loan for his company and act as its agent providing ‘high risk banking services’ to FTX.
Class Action Complaint Against Celtec Bank
A Class Action Complaint against Celtec Bank revealed further information about the corruption; it states that Chalopin allowed SBF to use his bank accounts for purposes such as facilitating payments for investors without ensuring they were legitimate or notifying them about potential risks associated with their investments.
It remains unclear how this case will progress but it serves as an important reminder that financial institutions must adhere to anti-money laundering regulations when working with any form crypto-related businesses or individuals who may be involved in illegal activity.