Wednesday, April 24, 2019

CEO of Coinflux Cryptocurrency Exchange Extradited to the U.S. for Money Laundering

The Romanian high court has extradited Nistor Vlad Călin, CEO and founder of the cryptocurrency exchange, Coinflux. He was reportedly involved in money laundering and other illegal activities which affected some US citizens. A local media outlet in the country recently reported this, adding that the CEO’s appeal not to be extradited was rejected.

CoinFlux’s Exchange Has Been in Operation Since 2015

Nistor Vlad’s exchange has been operation since 2015. This is a platform that has carried out over 200,000 transactions since its inception, and as at last year, about $3.4 million was transacted. As at press time, Coinflux is no longer carrying out its trades, and its customers have been notified that transactions are on hold due to “unexpected investigation.”

This can be attributed to the fact that the founder has been handed over to the U.S. authorities for allegedly taking part in money laundering where US citizens were scammed. Reports reveal that a group of Romanians who had scammed the latter used the exchange to convert the illegally gotten dollars to Bitcoin before changing it to the country’s fiat currency.

U.S. Secret Service Files a Cased Against Coinflux’s CEO

Therefore, this led to the arrest of Nistor in December by the Romanian law enforcement. This was after the U.S secret service filed a case that the founder had taken part in illicit activities.  Although he was released after his arrest and asked not to leave the country, Romania’s supreme judicial authority has however denied the CEO’s appeal not to be extradited.

Anatol Pânzaru, Nistor’s lawyer while defending his client before his extradition, said Romania and the US did not meet the judicial requirements needed before handing over his client to the latter country. The legal practitioner also said that the crimes were fully committed in the U.S. by the group of scammers and his client had no knowledge of the dealings.

Founder Says He Had No Control of the Events on His Exchange

In his defense, the founder of Coinflux has said that he had no knowledge of the illegal activities on his platform and no control over what took place. He stated that he has been in the finance industry for the past seven years. Also, no one plans to build a successful business with the aim of committing a crime.

The CEO is not the first person in the crypto industry to be moved from one country to another on the grounds of illicit activities. The same can be said about Alexander Vinnik, the founder of BTC-e cryptocurrency exchange. Here, the CEO was handed over to France authorities for money laundering.

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