Reggie Fowler, the former co-owner of the NFL’s Minnesota Vikings, has been sentenced to over six years in prison for his involvement in a $750 million cryptocurrency scam. Global Trading Solutions, which Fowler owned, worked with a firm called Crypto Capital to enable cryptocurrency exchanges to exchange their digital assets for cash. Prosecutors accused Fowler of fraudulently opening numerous bank accounts worldwide, claiming they were for real estate investments, but using them for illicit cryptocurrency transactions. Fowler’s position in the crypto world enabled him to operate as a shadow bank, enabling him to avoid compliance and regulatory hurdles. Fowler first admitted his guilt to five federal criminal charges in April 2022 and will now serve 75 months in prison.
Fiat off-ramps have proven to be essential for crypto exchanges, allowing them to convert digital assets into traditional fiat currencies. The recent Spring Banking Crisis highlighted the importance of fiat off-ramps, with regulators closing down several crypto-friendly banks, including Signature Bank, Silvergate Capital, and Silicon Valley Bank, severing vital links for crypto firms with traditional finance. Many banks are reluctant to work with the crypto sector due to high perceived risks of volatility, risk, and links to crime. As this case demonstrates, the US authorities are committed to prosecuting those who use illegal means to conduct their business.
