Reginald Fowler Rejects Plea Deal in Crypto 'Shadow Bank' Case

Reginald Fowler has 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.

AccessTimeIconFeb 3, 2020 at 8:00 a.m. UTC
Updated Aug 19, 2021 at 12:35 a.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

Reginald Fowler, a former investor of the U.S. National Football League team Minnesota Vikings, has 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of the case on Jan. 31, Fowler "rejected the current plea offer" on Jan. 30 and the U.S. government "has formally withdrawn that offer."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.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • 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 processing firm that has facilitated fiat currency onramps for several crypto exchanges including Bitfinex, Kraken and the now-defunct QuadrigaCX, among others.

    The payments firm 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 a secret loan to cover a loss that Bitifnex alleged was caused by Crypto Capital.

    It was reported in December that Fowler was initially expected to plead 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 would forfeit as much as $371 million.

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

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.