The United States Department of Justice (DoJ) recently arrested Maximilien de Hoop Cartier, a descendant of the Cartier luxury brand, on charges of money laundering involving cryptocurrency. According to a May 2 indictment, Cartier is accused of drug trafficking and laundering funds through the stablecoin Tether (USDT).

Cartier, a direct descendent of Louis Cartier, the founder of the luxury brand known for watches and jewelry, was allegedly connected to a Colombian drug cartel. He attempted to import 100 kilos of cocaine and laundered millions of dollars through over-the-counter USDT trades.

Using multiple shell companies posing as software and technology businesses, Cartier laundered hundreds of millions of dollars in illicit proceeds through USDT, dollars, pesos, and other currencies. The indictment reveals that Cartier operated these shell companies as unlicensed money transmitters and managed to launder 14.5 million USDT before his arrest in Miami.

Cartier is currently awaiting sentencing at a Miami detention center, facing four criminal charges including operating an unlicensed money remitter, money laundering, and conspiracy to commit money laundering. His accomplices are detained in a Colombian prison.

This development closely follows Tether’s announcement on May 2 of plans to develop a tool to monitor secondary market activity in collaboration with blockchain intelligence firm Chainalysis. The tool aims to help identify transactions potentially linked to illicit activities like terrorist financing.

Tether has a history of cooperating with law enforcement to prevent illicit transfers involving USDT. The stablecoin issuer recently pledged to freeze assets associated with PDVSA, the Venezuelan state-run oil company, after reports suggested PDVSA planned to use USDT to evade U.S. sanctions.

In a related incident, a major Russian exchange froze $4 million of user assets due to suspected money laundering activities.

Post Views: 7