US prosecutors have accused someone from the Cartier family of using cryptocurrency to launder drug profits, highlighting the increased focus on stopping this new method of crime.
Authorities announced Maximilien de Hoop Cartier, a singer and member of the Cartier family, was charged on May 2, along with three Colombian co-conspirators, for using an unlicensed cryptocurrency exchange to move drug profits from the US to Colombia.
Two other Colombians were also charged for planning to bring over 100 kilograms of cocaine into the US.
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The group allegedly disguised drug money by buying Tether cryptocurrency, converting it to US dollars through Cartier-controlled companies, and sending the laundered money to Colombian shell companies controlled by the co-conspirators.
The indictment states that the network laundered hundreds of millions of dollars, including an estimated $14.5 million between May 2023 and November 2023.
Cartier was arrested in Miami in February, and the five Colombian suspects were arrested in late April in their home country, according to a US Department of Justice press release. InSight Crime could not reach the defendants or their attorneys, and prosecutors did not respond to a request for comment..
InSight Crime Analysis
The indictment highlights the use of cryptocurrencies for criminal activities in Latin America and the Caribbean, and shows that law enforcement is making a more concentrated effort to address this issue.
Due to its decentralized nature and lack of strong government regulation, cryptocurrency provides appealing opportunities for money laundering.
Criminal organizations in the region have taken advantage of the weak regulatory framework, leading to an increase in crypto-crime. The lack of a strong regulatory framework has made Latin America a breeding ground for crypto-crime, which has been exploited by criminal actors. According to financial crime expert Kenneth Rijock, money launderers are attracted to cryptocurrency because it operates outside the usual financial rules, making it nearly impossible to trace transactions. unprepared Rijock also mentioned that changing the nature of the asset multiple times to confuse compliance efforts often leads to a successful operation. range This lack of transparency hinders law enforcement's ability to follow the money trail, especially for drug trafficking organizations in the region that use virtual currencies for their payments.
This is especially true for Mexican criminal groups involved in producing synthetic drugs and importing chemicals from suppliers in China and India.
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Despite this, the indictment indicates that law enforcement is making significant progress in addressing the issue.
The US has taken the lead in fighting against the misuse of cryptocurrencies. In 2021, it established the National Cryptocurrency Enforcement Team to address complex investigations and prosecutions related to criminal use of cryptocurrency. The National Cryptocurrency Enforcement Team was created to deal with complex investigations and prosecutions of criminal misuse of cryptocurrency. Some Latin American countries have done the same. In recent years, Colombian financial regulators have collaborated to decrease the occurrence of money laundering through virtual currencies and strengthen the regulatory framework around crypto.
worked together
to reduce the prevalence of money laundering through virtual currencies and strengthen the regulatory framework around crypto. In 2024, Mexico also implemented stronger regulations around cryptocurrency transactions. created Feature image: Tether, the cryptocurrency used by Maximilien de Hoop Cartier and conspirators to launder drug money. Credit: Corporate Financial Institute
US prosecutors have accused a member of the Cartier luxury goods family and three Colombians of laundering hundreds of millions of dollars in drug profits using cryptocurrency, highlighting an increased law enforcement focus on this relatively new modus operandi. Authorities announced the charges on May 2 against Maximilien de Hoop Cartier, a singer and purported member of the famed Cartier family, and three Colombian co-conspirators, alleging they used an unlicensed cryptocurrency exchange to send drug profits from the United States to Colombia. to reduce the prevalence of money laundering through virtual currencies and strengthen the regulatory framework around crypto. In 2024, Mexico also introduced stronger regulations around cryptocurrency transactions.
Feature image: Tether, the cryptocurrency used by Maximilien de Hoop Cartier and conspirators to launder drug money. Credit: Corporate Financial Institute