The US Justice Department recently arrested Maximilien de Hoop Cartier, a descendant of the Cartier jewelry empire, on charges of coordinating with a Colombian drug cartel to import and launder cocaine. He allegedly used shell companies to launder hundreds of millions of dollars, primarily through over-the-counter USDT trades. Cartier and his Columbian accomplices managed to launder $14.5 million worth of USDT stablecoin before their arrest. Cartier is facing four counts of criminal misconduct and is currently awaiting sentencing in a Miami detention center.
Stablecoins like USDT can be attractive for money laundering due to their relative stability compared to other cryptocurrencies, making them suitable for storing and transferring funds without the price volatility. Additionally, the pseudonymous nature of cryptocurrency transactions can make it difficult to trace the source and destination of funds. US Attorney Damian Williams emphasized the DoJ’s commitment to combating criminal activities, stating that the charges against Cartier demonstrate the office’s dedication to prosecuting international drug traffickers and money laundering networks seeking to exploit the US financial system.
Hoop Cartier was initially arrested in Miami, Florida, on charges including operating an unlicensed money remitter, transacting in property derived from illegal activities, money laundering, and conspiracy to commit money laundering. The indictment comes at a time when Tether, the company behind USDT stablecoin, is working to improve monitoring of its transactions. Tether recently announced a partnership with Chainalysis to launch tools that can identify wallets posing risks or associated with illicit or sanctioned addresses. This collaboration is seen as a key step in Tether’s efforts to establish transparency and security in the cryptocurrency market.
The term “secondary market activity” refers to transactions processed within blockchains using USDT, extending beyond direct purchases and sales from Tether. By leveraging Chainalysis’ expertise in blockchain intelligence, Tether aims to improve its ability to identify and mitigate risks associated with USDT transactions. Tether has also been proactive in collaborating with law enforcement bodies to counter illicit activities. In a recent case, Tether assisted the US DoJ and FBI in seizing $1.4 million worth of USDT from a tech support scam network. The company’s efforts to combat money laundering and illicit activities in the cryptocurrency space have been highlighted by this recent collaboration and the partnership with Chainalysis.
