Colombia-based broker sentenced to 160 months for laundering $15M in USDT
Summary
A Colombia-based crypto broker, Leonardo de Jesus Zuluaga Duque, has been sentenced to 160 months in prison for laundering approximately $14.5 million in drug trafficking proceeds using Tether's USDT and for participating in a scheme to import cocaine into the United States. This case underscores the ongoing focus of U.S. authorities on stablecoins, like USDT, which have been implicated in numerous schemes that facilitate cross-border money laundering associated with narcotics trafficking. In addition to his prison term, Duque was ordered to forfeit $14.75 million and cryptocurrency held in four addresses he controlled.
Tokens
$USDT
Analysis
Tether: Tether issues the USDT stablecoin used for digital asset transfers and payments. Its token featured in the laundering network involving cross-border transfers between the U.S. and Colombia. The company’s stablecoin has appeared in multiple enforcement cases tied to illicit finance. Department of Justice: The Department of Justice is the primary U.S. federal agency responsible for criminal prosecutions and law enforcement. It publicly announced the sentencing and forfeiture orders in this case involving cryptocurrency and drug trafficking. The agency regularly pursues investigations into money laundering facilitated by digital assets. Leonardo de Jesus Zuluaga Duque: Leonardo de Jesus Zuluaga Duque is a Colombia-based crypto broker. He participated in a scheme to launder drug trafficking proceeds using USDT through crypto accounts and shell companies. U.S. authorities sentenced him in connection with these activities spanning several months in 2023. Stablecoin Role: USDT has been documented in various schemes that move illicit funds between countries using crypto networks and shell entities. Enforcement Focus: U.S. authorities continue to target the use of stablecoins in cross-border money laundering tied to narcotics trafficking.
Categories
cryptoai_agentson_chain_whale