Colombian Crypto Broker Sentenced to 160 Months for $14.5 Million Money Laundering Scheme
Leonardo de Jesus Zuluaga Duque, a 63-year-old Colombian crypto broker, has been sentenced to 160 months in prison for laundering approximately $14.5 million in drug proceeds and conspiring to import cocaine into the United States, according to federal prosecutors. The case exposed an international network that used USDT, shell companies and traditional banking channels to move illicit funds across borders.
Prosecutors announced the sentence on Wednesday, October 21, 2026. In addition to the prison term, a federal judge ordered Zuluaga Duque to forfeit $14,751,846 and cryptocurrency associated with four addresses under his control. He was also sentenced to five years of supervised release.
How the USDT Money Laundering Network Operated
Between May and November 2023, Zuluaga Duque worked with several associates to transfer approximately $14.5 million in drug trafficking proceeds through a cross-border laundering operation.
The network converted criminal proceeds into Tether's USDT stablecoin in Colombia before transferring the value to an intermediary in the United States. The funds were then exchanged for U.S. dollars and routed through American shell companies. The money subsequently returned to Colombian businesses, where it was converted into pesos and distributed.
A central figure in the U.S. operation was Maximilien de Hoop Cartier, an Argentine citizen who claimed connections to the well-known Cartier jewelry dynasty. According to prosecutors, Cartier operated an unlicensed cryptocurrency money-transmitting business through companies presented to banks as legitimate technology enterprises.
Cartier's operation processed more than $470 million in illicit proceeds, prosecutors said. That amount was substantially larger than the approximately $14.5 million directly associated with Zuluaga Duque's laundering activities. Cartier previously pleaded guilty and received an eight-year federal prison sentence.
Cocaine Import Conspiracy Expanded the Investigation
The investigation also linked Zuluaga Duque to a conspiracy involving cocaine intended for delivery to New York. In November 2023, confidential sources working with law enforcement arranged a transaction involving approximately nine kilograms of cocaine paste. Prosecutors said the substance was intended to be processed into cocaine before being delivered to New York state.
Adrian Fernando Areiza Ceballos delivered the narcotics to an undercover officer, while Zuluaga Duque received a commission for helping arrange the transaction, according to the case account.
Investigators pursued a second prospective transaction in February 2024 involving approximately 100 kilograms of cocaine paste. Colombian police later executed search warrants and recovered roughly 111 kilograms.
Zuluaga Duque and other defendants were arrested in Medellín on April 30, 2024, with assistance from Interpol.
All Five Co-Defendants Have Been Sentenced
U.S. Attorney Jamie McDonald said the defendants used cryptocurrency alongside shell companies and conventional banking services to move criminal proceeds across international borders.
All five co-defendants have now been sentenced, with prison terms ranging from three to eight years, according to the source account. Zuluaga Duque's 160-month sentence amounts to 13 years and four months.
Traditional Banking Played a Key Role in the Scheme
The case illustrates how cryptocurrency transfers can form one part of a broader money laundering process. USDT was used to move value across borders, but the operation also relied on dollar conversions, shell companies and conventional bank accounts before funds returned to Colombia for conversion into pesos.
The case therefore involved more than cryptocurrency transactions alone: investigators described a financial chain combining digital assets with traditional financial infrastructure to move and redistribute alleged drug proceeds.
source: news.bitcoin
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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