Crypto Capital executive Oz Yosef was indicted by the United States Attorney for the Southern District of New York on three criminal charges. The filing was dated October 23. The office of the United States Attorney confirmed that the three charges on the indictment include conspiracy to commit bank fraud, bank fraud and conspiracy to operate an unlicensed business for transmitting money.

The filing confirms some previously reported allegations from Bitfinex. That cryptocurrency exchange recently released a statement that attempted to establish itself as a victim of Crypto Capital's fraud. The fraud was in regards to its previous payments processor.

Bitfinex also stated that Crypto Capital spread its funds across many bank accounts in a range of countries, which made it difficult to determine just how much money they had and how they were moving the funds between those different accounts.

The BitFinex officials stated that a payments processor located in Panama had processed funds on behalf of and for Bitfinex for a long time. Bitfinex had been relying upon those representations from the payments processor as well as the proclamations issued by CEO Oz Yosef. It was later discovered that both the payments processor and Yosef were misleading customers and regulators.

According to the exchange, Crypto Capital had routinely referred to its company's integrity, expertise in banking and finance and strong compliance program. It also referred to its many financial licenses. It did this in an attempt to assure the public that Crypto Capital had the capacity to handle the financial transactions of Bitfinex.

Bitfinex had stated in the past that any allegation from Crypto Capital about the laundering of illegal funds upon the request of customers of Bitfinex or Bitfinex itself were false. On October 24, the president of Crypto Capital was arrested by authorities in Poland on the suspicion of money laundering and involvement in an alleged international drug cartel. The president, Ivan Manuel Molina Lee, was detained on an arrest warrant issued by the Warsaw prosecutor's office, and the warrant allowed for his arrest anywhere in Europe. The arrest is connected to the $350 million seizure.