Cartier heir arrested for money laundering with cryptocurrency
The US Department of Justice (DoJ) has apprehended Maximilien de Hoop Cartier, a direct descendant of Cartier founder Louis Cartier, for allegedly using Tether’s USDT stablecoin to launder proceeds from drug trafficking. This case is significant as it involves a person of influence in connection with crypto-related crime.
The indictment reveals that Cartier collaborated with a Colombian drug cartel to smuggle 100 kilos of cocaine into the US and laundered hundreds of millions of dollars through over-the-counter USDT trades. To hide his activities, Cartier used shell companies that posed as legitimate software and technology firms, using their accounts as unlicensed money transmitters.
Before his arrest, Cartier and his Colombian accomplices managed to launder $14.5 million worth of USDT stablecoin. Cartier is currently awaiting sentencing in a Miami detention center and faces four counts of criminal misconduct, while his accomplices are detained in Colombia.
Stablecoins like USDT are attractive for money laundering due to their stability compared to other cryptocurrencies, making them suitable for storing and transferring funds without the price volatility of assets like Bitcoin. Additionally, the pseudonymous nature of cryptocurrency transactions makes it challenging to trace the origin and destination of funds.
US Attorney Damian Williams emphasized the DoJ’s commitment to combatting criminal activities, stating, “The charges brought today demonstrate this Office’s commitment to prosecuting international drug traffickers and piercing complicated money laundering networks seeking to exploit the US financial system.”
It is worth noting that Cartier was initially arrested on February 22, 2024, in Miami, Florida, and appeared before a US Magistrate Judge in the Southern Districts of Florida. His charges include operating as an unlicensed money remitter, transacting in property derived from illegal activities, money laundering, and conspiracy to commit money laundering.
The indictment of the Cartier heir for alleged money laundering using USDT coincides with Tether’s efforts to enhance its monitoring of the stablecoin’s transactions. This development follows a UN report that identified USDT as the preferred cryptocurrency for money launderers.
Tether recently announced a partnership with Chainalysis to launch monitoring and analysis tools capable of identifying wallets that pose risks or are associated with illicit or sanctioned addresses. This collaboration is viewed as a significant step towards establishing transparency and security in the cryptocurrency market.
The aim is to improve Tether’s ability to identify and mitigate risks associated with USDT transactions by leveraging Chainalysis’ expertise in blockchain intelligence. Tether has also been actively cooperating with law enforcement agencies in combating illicit activities, such as assisting the US DoJ and the Federal Bureau of Investigation (FBI) in seizing $1.4 million worth of USDT from a tech support scam network in March.
Follow Us on Google News
