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Reginald Fowler Rejects Plea Deal in Crypto ‘Shadow Bank’ Case – CoinDesk

Reginald Fowler, a former investor of the U.S. football team Minnesota Vikings, rejected a plea deal with the U.S. government in an ongoing case that accuses him of operating “shadow bank” services tied to crypto exchanges.

According to a letter submitted by the prosecutor of the case on Jan. 31, Fowler “rejected the current plea offer” on Jan. 30 and the U.S. government “has formally withdrawn that offer.” As such, the parties will move to trial as scheduled on April 28.

Fowler was indicted in April 2019, along with Israeli national Ravid Yosef, by the U.S. government for allegedly, among other charges, running “shadow bank” services that are tied to Crypto Capital.

Crypto Capital is a payment process firm that has facilitated fiat currency onramp for several crypto exchanges including Bitfinex, Kraken, the now-defunct QuadrigaCX, among others.

Crypto Capital is also involved in another ongoing case filed by the New York Attorney General against Bitfinex and its sister company Tether, which accused the two of using customers’ funds as a loan to cover a loss that Bitifnex alleged was caused by Crypto Capital.

It was reported in December that Fowler was initially expected to plea guilty to at least some of the charges. According to a Bloomberg report on Feb. 1, the plea deal was for Fowler to admit to one single felony if he could forfeit as much as $371 million.

Read the U.S. Attorney’s letter below:

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