Defendant Reginald Fowler in the "shadow banking" case sentenced to 75 months in prison for cryptocurrency fraud

2023-06-06 10:00:34

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ChainCatcher news, former Minnesota Vikings shareholder Reginald Fowler has been sentenced to 75 months in prison for providing shadow banking services to cryptocurrency exchanges and fraudulently acquiring the Alliance of American Football (AAF), with a forfeiture of $740 million and an ordered payment of approximately $53.19 million.

Prosecutors stated that Fowler misled AAF executives by claiming he would support the league through accounts containing funds from real estate transactions, thereby reaching a stock purchase agreement that made him the largest shareholder of the league's parent company. However, these bank accounts were actually used to convert digital currency into cash without the knowledge of the banks involved, with Fowler handling approximately $750 million in cryptocurrency transactions over 10 months.

Fowler's company, Global Trading Solutions, was previously a payment processor for Crypto Capital (a failed "shadow bank") and other crypto companies. Prosecutors said, "Fowler violated federal anti-money laundering laws and defrauded the AAF, while lying to U.S. banks in the process." (source link)

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