- Four individuals, including a purported descendant of the Cartier family, are being charged by prosecutors for allegedly laundering hundreds of millions of dollars.
- The indictment alleges that the money laundered was in the form of the stablecoin Tether (USDT), and was derived from drug trafficking proceeds.
- Maximilien de Hoop Cartier, one of the accused, allegedly operated an over-the-counter (OTC) crypto exchange and controlled US-based shell companies involved in the laundering scheme.
Prosecutors charge four individuals, including a Cartier family descendant, for allegedly laundering millions in Tether (USDT) derived from drug trafficking proceeds.
Alleged Money Laundering Scheme Unveiled
The U.S. Attorney’s Office for the Southern District of New York has unsealed an indictment charging three Colombian nationals and a purported direct descendant of the Cartier watch and jewelry-making family. The four individuals, Maximilien de Hoop Cartier, Leonardo De Jesus Zuluaga Duque, Erica Milena Lopez Ortiz, and Felipe Estrada Echeverry, are accused of conspiring to commit money laundering.
Details of the Indictment
According to the indictment, the accused belong to a network that laundered millions of dollars worth of the stablecoin Tether (USDT) – money that allegedly came from drug trafficking. The network reportedly utilized a system of money laundering brokers and shell companies in the US, Colombia, and elsewhere to launder crime proceeds through the US to Colombia. Between May and November 2023, the network allegedly laundered approximately $14.5 million in Tether derived directly from the proceeds of drug trafficking.
Role of Cartier in the Scheme
Cartier is accused of operating an over-the-counter (OTC) crypto exchange while controlling and operating US-based shell companies that held bank accounts at various US lenders. These companies were allegedly used to operate as an unlicensed money remitting business related to the operation of a cryptocurrency exchange. From January 2020 to the present, Cartier’s unlicensed money-transmitting business is said to have executed hundreds of millions of dollars worth of unlawful transactions and laundered hundreds of millions in criminal proceeds, including drug trafficking proceeds.
Conclusion
This indictment serves as a stark reminder of the potential misuse of cryptocurrencies for illegal activities such as money laundering. It underscores the need for robust regulatory frameworks and vigilant enforcement to prevent such illicit activities in the crypto space. As the investigation continues, it will be crucial to monitor the developments and implications for the broader cryptocurrency market.
