US cracks down on cartel-linked cryptocurrency laundering ring
November 22, 2024
A federal grand jury in Florida has indicted nine individuals accused of laundering drug money through cryptocurrencies for Mexican and Colombian cartels.
According to the US Department of Justice, the defendants allegedly operated a “network of black market cryptocurrency launderers and unlicensed money movers” to facilitate the scheme.
Cryptocurrency Money Laundering Scheme for Drug Smuggling
The operation, which spanned from 2020 to 2023, involved collecting cash from drug sales in U.S. cities, converting the money into cryptocurrency, and transferring it to digital wallets under their control. The cryptocurrency was then converted back into cash and delivered to cartel leaders in Mexico and Colombia.
According to court documents, Nelson Snyder Vazquez Duarte, also known as “Sobre” or “Sobreno,” and his associates managed the transfer of cash and cryptocurrencies to black market cryptocurrency exchangers. These exchangers included Hernan Horacio Richard Samper, Maria Eugenia Landeros Rosas, also known as “Yennie,” Raymundo Carlos Rodriguez Hueter, Michael Higueli Morales, and Hernan Julian Calvo Bueno.
Sergio Fernando Vargas Alvarez, Juan Carlos Riano Montes, Jesus Ivan Rincon Martinez, Morales, and Calvo Bueno worked as couriers, moving cash between cities in the United States.
All nine defendants face charges of conspiracy to commit cryptocurrency laundering and operating an unlicensed money transfer business. Prosecutors also separately charged Duarte, Landeros, Hueter, Rincon, Morales, Calvo-Bueno, and Alvarez with separate money laundering offenses.
This case is part of the Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF targets and dismantles the largest drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States.
“This case highlights how organized crime has adapted to exploit technology for illegal activities. We remain focused on dismantling these networks and holding criminals accountable,” said U.S. Attorney Markenzie LaPointe.
Cryptocurrencies have become an increasingly important tool for illicit financial activities, including money laundering. OCDETF is actively working to address these challenges by targeting networks that use cryptocurrencies to conceal and move drug proceeds across borders, as demonstrated in this case.
