Crypto Capital principal Oz Yosef has been indicted on three criminal counts by the US Attorney’s Office of the Southern District of New York, further implicating the company in Bitfinex’s ongoing scandal. 

Just days after it was reported that Crypto Capital’s president Ivan Manuel Molina Lee had been arrested by Polish police, Yosef has been indicted on conspiracy to commit bank fraud, bank fraud and conspiracy to operate an unlicensed money transmitting business. 

Crypto Capital, which served as the payment processing firm for Bitfinex, has been implicated in the exchange’s $850 million scandal also involving Tether. 

According to a subpoena filed Oct. 18, Bitfinex claims Crypto Capital mishandled more than $850 million of its funds, telling the exchange Polish authorities had frozen the entrusted capital. Instead, Crypto Capital has been tied to money laundering charges with international drug cartels, which led to the arrest of Lee and Yosef last week. 

Bitfinex’s general counsel Stuart Hoegner released a statement following Lee’s arrest, saying that the exchange was the victim of fraud. Bitfinex has been entangled in an ongoing lawsuit by the New York Attorney General’s Office for inappropriately using Tether funds to cover for the $850 million loss. 

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