Cartier Jewelry Heir Arrested for Money Laundering with Crypto
In a surprising turn of events, the US Justice Department (DoJ) apprehended a member of the Cartier dynasty on May 2, accusing him of using Tether’s USDT stablecoin to launder money gained from drug trafficking. This case highlights a rare intersection between influential individuals and crypto-related crimes.
According to the DoJ’s indictment announcement, Maximilien de Hoop Cartier, a direct descendant of Cartier’s founder, Louis Cartier, allegedly collaborated with a Colombian drug cartel to import 100 kilograms of cocaine. He then proceeded to launder hundreds of millions of dollars, primarily through over-the-counter (OTC) USDT trades.
The indictment revealed that Cartier utilized shell companies, presenting them to financial institutions as legitimate software and technology businesses. He further exploited these companies’ accounts as unlicensed money transmitters.
It was also uncovered that Cartier and his Colombian counterparts managed to launder $14.5 million worth of USDT stablecoin prior to their arrest. Cartier is currently awaiting sentencing in a Miami detention center and is facing four counts of criminal misconduct, while his accomplices are being held in Colombia.
Stablecoins like USDT are susceptible to money laundering due to their relative stability compared to other cryptocurrencies. Their ability to store and transfer funds without the price volatility of assets such as Bitcoin makes them an attractive option. Additionally, the pseudonymous nature of cryptocurrency transactions makes it challenging to trace the origin and destination of funds.
US Attorney Damian Williams commented on the charges, stating that the DoJ is dedicated to combating criminal activities. He emphasized the Office’s commitment to prosecuting international drug traffickers and dismantling complex money laundering networks that exploit the US financial system.
It is worth noting that Cartier was initially arrested on February 22, 2024, in Miami, Florida. He appeared before a US Magistrate Judge in the Southern Districts of Florida, facing charges of operating an unlicensed money remitter, engaging in transactions involving property derived from illegal activities, money laundering, and conspiracy to commit money laundering.
The indictment of the Cartier Jewelry heir for his alleged involvement in money laundering with 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 cryptocurrency of choice among money launderers.
Earlier this month, Tether announced its collaboration with Chainalysis to launch monitoring and analysis tools capable of identifying wallets that may pose risks or be associated with illicit or sanctioned addresses.
The term “secondary market activity” refers to transactions conducted within the broader blockchain using USDT, extending beyond direct purchases and sales from Tether.
Experts believe that the partnership with Chainalysis is a crucial step for Tether in establishing transparency and security in the cryptocurrency market. The company aims to improve its ability to identify and mitigate risks associated with USDT transactions by leveraging Chainalysis’ expertise in blockchain intelligence.
Tether has also taken proactive measures against illicit activities by cooperating with law enforcement agencies. In March, Tether assisted the US DoJ and the Federal Bureau of Investigation (FBI) in seizing $1.4 million worth of USDT from a tech support scam network.
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