Bitfinex Calls Itself 'Victim of a Fraud' in Response to Recent Arrest

Major global crypto exchange Bitfinex has called itself a "Victim of a fraud" in response to the recent arrest of the president of Crypto Capital exchange.

Following the arrest report on Oct. 24, Cointelegraph received a response statement from Stuart Hoegner, Bitfinex's general counsel, on Oct. 25.

The statement seeks to establish the company as a "Victim of fraud" and to deny potential accusations of illegal activity by Bitfinex.

As a major crypto payment processor, Crypto Capital reportedly served industry-known crypto exchanges in the past, including Binance, Kraken, BitMEX as well as Bitfinex.

Bitfinex alleges that Crypto Capital was misleading the company for years.

As previously reported, Crypto Capital is allegedly responsible for Bitfinex's loss of $880 million.

On Oct. 18, Bitfinex's parent company IFinex filed a discovery application to regain access to over $880 million in funds tied to Crypto Capital, alleging that simply did not keep the fund of Bitfinex's clients.

In the recent statement, Bitfinex noted that Crypto Capital processed certain funds for and on behalf of Bitfinex for several years.

The exchange elaborated that at the time, Bitfinex was relying upon representations from Crypto Capital, including those by Molina Lee and another exec Oz Yosef, which eventually turned out to be misleading.

Another principal, Oz Yosef, has reportedly been indicted on three criminal counts by the United States Attorney for the Southern District of New York, according to Bitfinex.