Former NFL Team Owner Sentenced To Six Years In Prison In Crypto Shadow Bank Case

JAKARTA - Former NFL team owner totaled six years in prison for operating as a "shadow bank" for the crypto sector, involving transactions worth more than 700 million unregulated US dollars (Rp10.3 billion) for 10 months in 2018.

The 63-year-old, who was a co-owner from the Minnesota Vikinges, was sentenced to a total of 75 months on charges of bank fraud and money laundering, according to a statement from the United States Prosecutor's Office in New York on June 5.

This marks the end of a case that lasted for five years since he was arrested in 2019 for alleged shadow banking activities. Shadow banking is a term used to describe activities such as banking (often illegal) carried out by non-bank entities.

Former co-owner of Minnesota Vikings sentenced to 75 months in prison for providing shadow banking services to cryptocurrency exchangeshttps://t.co/Nc2PVhEajw

— US Attorney SDNY (@SDNYnews) June 5, 2023

Former co-owner of Minnesota Vikings sentenced to 75 months in prison for providing shadow banking services to cryptocurrency exchangeshttps://t.co/Nc2PVhEajw

Fowler initially pleaded not guilty to all charges in 2020, but turned his confession guilty in April 2022.

In a recent statement, US Attorney Damian Williams said that a series of lies allowed Fowler to mislead several banks.

"Reginald Fowler avoided federal law by processing hundreds of millions of unregulated transactions on behalf of crypto exchanges as shadow banks. He did so by lying to legitimate US financial institutions, which poses a serious risk to A's financial system," Williams said, quoted by Cointelegraph.

Williams then said Fowler "tricked" Alliance of American Football (AAF) a professional football league that had ended by lying about the value of his fortune in order to have "substantial shares" in the league.

"It must be clear: This office is committed to suing people who lie to banks and avoiding the law as a way to run their business," the federal prosecutor stressed.

OK -now at crypto Fowler sentencing. It was set for 10: FOwler just came in at 10:19 am. Inner City Press is covering the case https://t.co/S97h82I3FP and will live tweet, thread below pic.twitter.com/HapbKHoHaz

— Inner City Press (@innercitypress) June 5, 2023

OK -now at crypto Fowler sentencing. It was set for 10: FOwler just came in at 10:19 am. Inner City Press is covering the case https://t.co/S97h82I3FP and will live tweet, thread below pic.twitter.com/HapbKHoHaz

According to Williams, Fowler managed to commit his crimes by establishing Global Trading Solutions (GTS) around February 2018, which works with Crypto Capital and other crypto companies operating from Israel.

There, Fowler, GTS, and the crypto company avoided licensing by lying to banks to open accounts used to process crypto transactions.

Fowler opened these twelve accounts to facilitate crypto transactions without the knowledge of the banks and did not disclose GTS' relationship with the crypto company, Williams said:

"At every point of time, POWER, GTS, and Crypto companies never have permits as remittance businesses in the United States, as required by federal law."

One of the crypto companies involved is iFinex Inc's parent company of crypto exchange Bitfinex and stablecoin publisher Tether, it was revealed.

"Other vocalists include conspiracy to bank fraud, operations of unlicensed remittance businesses, conspiracy to run an unlicensed remittance business, and wire fraud."

In addition to the prison sentence, Fowler was required to confiscate assets worth US$740 million (Rp10.9 billion) and pay more than US$53 million (Rp786 billion) as restitution to AAF.

sama Fowler has been a controversial figure in the world of business and sports before. As a former owner of parts of the Minnesota Vikings, he has been involved in several other investment and business projects.

However, with these lawsuits, Fowler is faced with serious consequences for shadow banking activities carried out in the crypto sector. This move affirms the commitment of the United States government to enforce the law and combat illegal activities in the crypto industry.

The case also strengthens the need for strict regulation and regulation in the crypto industry to protect investors and prevent misuse of the financial system.

With the prison sentence given to Fowler, it is hoped that it will serve as a warning to other individuals or entities seeking to carry out illegal and fraudulent activities in the crypto sector.

Authorities continue to make efforts to investigate and crack down on law violations in the crypto industry, with the aim of creating a safer and more regular environment for business people and investors.