Bitfinex, one of the largest cryptocurrency exchanges in the world, is at the center of yet another controversy. The exchange best known for their involvement surrounding the US dollar-backed cryptocurrency Tether, has been implicated by Polish authorities in an investigation involving the Columbian drug cartel’s money laundering efforts.
According to Polish media, two Pruszków-based companies had found to be involved in fraudulent activities in relation to an embassy in the Democratic Republic of Congo being constructed by Belgium’s Ministry of Foreign Affairs. One such company was said to be a cryptocurrency exchange, but did not explicitly call out Bitfinex. However, in subsequent reports, Bitfinex was called out due to their connection to Skierniewice’s Cooperative Bank.
While investigating the fraud case, Polish authorities discovered a connection to Colombian drug cartels that saw laundered fiat being converted into crypto via Bitfinex.
An admin on Bitfinex’s subreddit called the claims “not true.” Elsewhere on the web, a Polish Bitcoin forum user claimed he was interrogated by Polish law enforcement in connection with transactions from Crypto SP Z O.O. Crypto SP Z O.O’s parent company Crypto Capital Corp. is believed to be a shell company for Bitfinex.
At this time, no official charges have been filed, though the implications are making waves across the web. Reports state that both Europol and Interpol are being consulted on next steps, if any.
Bitfinex itself told FinanceMagnates that they are “aware of the current allegations that have been reported by Polish media over the past several hours” but “believes that these allegations are untrue and Bitfinex customers and operations are unaffected by false rumors.”
Bitfinex and transparency surrounding its sister company Tether has already created much suspicion and distrust around the crypto exchange, and these new allegations will only draw more negative attention to the company if found to be true.