Reggie Fowler Gets Over 6 Years for Crypto Scheme, Ordered to Forfeit $740M

The former part owner of the Minnesota Vikings misled a number of banks to process hundreds of millions of dollars of illicit crypto transactions


alexeisido/Shutterstock modified by Blockworks


US federal prosecutors got their way in the Reginald Fowler case, with a New York judge imposing an approximately six-year prison term on the convicted crypto fraudster. 

Fowler’s sentence stemmed from the fact that he “evaded federal law by processing hundreds of millions of dollars of unregulated transactions on behalf of cryptocurrency exchanges as a shadow bank,” US Attorney Damian Williams said in a statement on Monday. 

Prosecutors in April pushed for a seven-year prison term, plus fines amounting to over $720 million. 

The bank fraud is tied to Fowler’s time running Global Trading Solutions (GTS). The former Minnesota Vikings minority owner pleaded guilty last April to lying to banks in order to process more than $700 million in “unregulated” crypto transactions, the Southern District of New York said in a statement

“Fowler evaded federal law by processing hundreds of millions of dollars of unregulated transactions on behalf of cryptocurrency exchanges as a shadow bank,” Williams said. “He did so by lying to legitimate U.S. financial institutions, which exposed the U.S. financial system to serious risk.”

The shadow bank, Crypto Capital Corp, was established to process transactions for crypto startups operating by choice or necessity outside of the traditional banking system. 

Bitfinex was also wrapped up with Crypto Capital, giving the payment processing firm $850 million to process customer withdrawals. New York Attorney General Letitia James alleged in 2021 that Tether loaned Bitfinex the $850 million to cover the loss. 

Prosecutors said Fowler personally opened dozens of accounts that processed crypto transactions without the knowledge of the banks involved.  

Fowler has been ordered to forfeit $740.2 million of the proceeds.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. What you can expect: And more! Don’t miss out on the opportunity to be in the room when the future of crypto is decided. Join us and help shape the future of our […]

recent research

Research report - cover graphics-2.jpg


Base has doubled-down on its commitment to the Superchain vision, has shown early signs of success with nearly $400M in TVL, and has become home to novel dapps such as which has seen significant traction.


The SEC, in a Friday court filing, said it reserves its right to object to the plan from Celsius


Largely unnoticed until Monday, stakeholder Justin Sun confirmed a $8 million hack in a tweet


Crypto is that perfect edge for candidates to use to gain votes and campaign dollars


Coinbase can offer crypto custody, crypto buying and selling and crypto trading as part of the registration


The latest industry scandal has rattled Hong Kong’s ambition to become a global crypto hub as its main financial regulator ramps up measures designed to protect investors


Coinbase holds about 5% of the total bitcoin in circulation, according to on-chain analytics firm Arkham Intelligence