<p class="is-style-lead">Reginald Fowler, a former co-owner of the Minnesota Vikings and prominent figure in the NFL, has been handed a six-year sentence after being found guilty of running a &#8220;shadow bank&#8221; operation within the crypto industry.</p>



<p>The sentencing follows his involvement in over $700 million worth of unregulated transactions over a 10-month period in 2018.</p>



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<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">Former co-owner of Minnesota Vikings sentenced to 75 months in prison for providing shadow banking services to cryptocurrency exchanges<a href="https://t.co/Nc2PVhEajw" target="_blank">https://t.co/Nc2PVhEajw</a></p>&mdash; US Attorney SDNY (@SDNYnews) <a href="https://twitter.com/SDNYnews/status/1665772186353672195?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 5, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<h2 class="wp-block-heading" id="700-million-shadow-bank-scheme">$700 million shadow bank scheme</h2>



<p>The US Attorney&#8217;s Office in New York issued a <a href="https://www.justice.gov/usao-sdny/pr/former-co-owner-minnesota-vikings-sentenced-75-months-prison-providing-shadow-banking" target="_blank" rel="noopener">statement </a>on June 5, announcing Fowler&#8217;s sentencing of 75 months on charges of bank fraud and money laundering. This development concludes a five-year-long legal case that began with <a href="https://crypto.news/feds-seize-part-bitfinexs-missing-funds-first-arrest-made/">Fowler&#8217;s arrest in 2019</a> for his alleged participation in shadow banking activities.</p>



<p>Shadow banking refers to bank-like activities conducted by non-bank entities, often considered illegal. Initially pleading not guilty to all charges in 2020, Fowler eventually changed his plea to guilty in April 2022.</p>



<p>In the latest statement, US Attorney Damian Williams condemned Fowler&#8217;s deceitful actions, stating that a series of lies enabled him to mislead and deceive several banks. Fowler bypassed federal regulations by processing hundreds of millions of dollars in unregulated transactions as a shadow bank for cryptocurrency exchanges, thereby posing severe risks to the US financial system.</p>



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<p>Williams further highlighted Fowler&#8217;s fraudulent actions that victimized the Alliance of American Football (AAF), a former professional football league. Fowler misrepresented his net worth to obtain a substantial stake in the league.</p>



<p>According to Williams, Fowler established Global Trading Solutions (GTS) around February 2018 to collaborate with <a href="https://crypto.news/quadrigacx-funds-crypto-capital/">Crypto Capital</a> and other cryptocurrency firms based in Israel. Through deceitful means, Fowler, GTS, and the crypto firms opened bank accounts without disclosing their relationship, enabling them to process cryptocurrency transactions.</p>



<p>As mandated by federal law, Fowler successfully orchestrated these illicit activities without obtaining the necessary license as a money-transmitting business.</p>



<p>Among the implicated crypto firms was iFinex Inc, the parent company of Bitfinex, a prominent cryptocurrency exchange, and Tether, a widely used stablecoin.</p>



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<iframe loading="lazy" title="The Rise and Fall of Reggie Fowler - Episode 70" width="1020" height="574" src="https://www.youtube.com/embed/8OrQ9tbttWs?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
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<p>Fowler&#8217;s convictions included bank fraud conspiracy, operating an unlicensed money-transmitting business, conspiracy to run an unlicensed money-transmitting business, and wire fraud.</p>



<p>In addition to the prison sentence, Fowler has been ordered to forfeit $740 million and pay over $53 million in restitution to the AAF.</p>



<p>Williams emphasized the commitment of his office to prosecute individuals who engage in deceptive practices and skirt the law for their business gains.</p>



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Former NFL co-owner sentenced to 6 years for crypto shadow bank scheme

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