iFinex Inc., which takes pride in being the parent concern of cryptocurrency exchange Bitfinex, has filed a discovery application concerning the allegedly secluded funds worth a whopping sum of $880 million which were entrusted by the trading platform to Global Trade Solutions AG, popularly known as Crypto Capital along with other organizations. The application has been presented on October 18, 2019, by iFinex in the US District Court for the Central District of Southern California.
As a part of the latest news, Bitfinex failed to get hold of the $880 million worth funds from the Crypto Capital platform since December 2018. The cryptocurrency firm has countered the accusations of the exchange by claiming that the government agencies have seized or frozen its bank accounts in different parts of the world, including Poland, the UK, the USA, and Portugal.
The crypto exchange has requested a writ in the court to take a deposition from Rondell “Rhon” Clyde Monroe. It has also urged the court to make Monroe produce the crucial documents as well. Monroe is the Vice President of TCA Investment Bancorp and Trust Company. iFinex has filed the discovery application under 28 U.S.C. § 1782(a) that serves as a federal law that renders a person to produce a document in a proceeding in a non-U.S litigation. Giancarlo Devasini, CFO of Bitfinex, has annexed a supporting declaration along with the discovery application in the court.
Bitfinex has requested the court to demand information about the ownership and account operations of Crypto Capital in the U.S banks, including HSBC, Citibank, Bank of America, Sun Trust, TD Bank, US Bank, Wells Fargo and more.
Bitfinex has clarified that Crypto Capital had offered payment processing facilities to the exchange network since 2014. It played a pivotal role in channelizing the operations for the trading platform during the 2017-2018 period as this was the time when Bitfinex failed to maintain contacts with the banks in Taiwan, allegedly because of pressure from the U.S banks.
The exchange has accused Crypto Capital of employing one or more than one account at TCA Bancorp for transferring the funds. Bitfinex is of the opinion that Monroe has the documents and complete information concerning the matter and so this can help the exchange in getting back its funds worth hundreds of millions of dollars.
As per the stats given by Bitfinex, $306 of the total amount is being possessed by Monroe and TCA Bancorp. This is fostered with the help of a UK-based entity, G.T.S Resources Limited, owned by Reginald Fowler. The exchange clarified that it was unaware of the connection between Fowler and Crypto Capital until December 2018. Further, $355 million in Bitfinex funds are stored in Poland’s Bank Spoldzielczy, and $218 million are being placed in 3 Portugal banks, revealed Crypto Capital.