A major money laundering network powered by cryptocurrencies linked to international drug cartels has been dismantled by United States federal authorities.

Federal Indictments and Charges

On Nov. 21, a federal grand jury in the Southern District of Florida indicted nine individuals for conspiracy to launder U.S. currency and operating an unlicensed money-transmitting business. The charges follow a multi-agency operation involving Homeland Security Investigations, the IRS Criminal Investigation Unit, and the Broward County Sheriff’s Office. The investigation revealed that the defendants used cryptocurrencies to launder drug money from the U.S. to cartels operating out of Mexico and Colombia between 2020 and mid-2023.

Operation Details

Court documents reveal that the operation involved coordinating the delivery of cash and cryptocurrency to black-market exchangers. Some participants acted as couriers, physically transporting cash between various U.S. cities. All nine face charges of conspiracy to commit money laundering and operating an unlicensed money-transmitting business. So far, three other individuals connected to the case have already been convicted.

“Cryptocurrencies have provided cartels with a modern loophole—transforming traditional money laundering into a digital operation that’s harder to trace.”

The Role of Cryptocurrencies in Money Laundering

Cryptocurrencies, with their borderless appeal and transactional opacity using tools like crypto mixers, have given cartels new avenues to obscure the origins of illicit funds. These schemes often involve cryptocurrency exchanges and shell companies serving as fronts to launder money.

In March, a Las Vegas CEO was convicted for using Bitcoin to launder over $4 million to cartels in Mexico in 2021. In 2018, two companies accused of laundering funds for Colombian cartels were allegedly using a well-known crypto exchange. Maximilien Cartier, linked to a French luxury brand, was indicted in May for laundering millions via over-the-counter USDT trades.

Increased Regulatory Scrutiny

With the growing use of cryptocurrencies in money laundering, regulators worldwide have ramped up scrutiny and enforced stricter measures to curb illicit activities. This increased vigilance aims to prevent the misuse of digital currencies in illegal operations.

Stay informed with the latest news in the world of cryptocurrencies, investing, and finance.

#Money #DigitalCurrency

Post Views: 0