U.S. Authorities Seize $58 Million from Crypto-Friendly Bank
Date: 2023-07-21 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
U.S. federal authorities have issued several orders for the confiscation of accounts belonging to Deltec Bank. The Bahamian Bank provides services to companies that deal with cryptocurrency
In the past month, the U.S. Secret Service has conducted several seizures of funds from U.S. bank accounts controlled by Deltec. She referred to signs of fraud using electronic means and banking services, as well as money laundering.
"Law enforcement agencies are investigating organized international money laundering crime syndicates investing in cryptocurrency and other frauds using electronic means," the letter said.
According to U.S. authorities, the victims of the fraud were tricked into transferring money to shell companies, after which the funds were sent in several transfers abroad to hide the source, nature, ownership and control of the funds.
In total, the Secret Service was allowed to seize up to $58.5 million on June 13 and 15. The accounts covered by the arrest warrant were depository accounts at another bank, the Mitsubushi Bank UFJ Trust in New York, but opened by Deltec on behalf of corporate clients.
How Deltec helped scammers
The Secret Service alleges that the customers whose funds Deltec kept there were shell companies involved in an international fraud scheme. This included spoofing cryptocurrency sites to trick victims into depositing digital assets or cash into accounts, believing they had invested them.
At least 74 shell companies received the proceeds of electronic fraud and transferred them to one of the custodial accounts, which then transferred them to other accounts in the Bahamas. The island banks then structured the transfers in such a way as to avoid the scrutiny that would normally apply to international transfers.
Buying bitcoins (BTC) with customers' money
In 2021, it turned out that Deltec invested client money in bitcoin at the rate of $9300. Then the bank reduced the volume of government bonds, but still held part of the funds in gold, as well as a "large position in bitcoin."
At the same time, the top manager of Deltec Bank & Trust admitted that the bank will continue to buy bitcoin if the Fed maintains its course towards quantitative easing.
