Cartier Heir Caught Laundering Money with Cryptocurrency

US Justice Department Arrests Cartier Heir for Money Laundering

The US Justice Department (DoJ) arrested Maximilien de Hoop Cartier on May 2, charging him with laundering proceeds of drug trafficking using Tether’s USDT stablecoin. This case highlights a rare intersection between influential individuals and crypto-related crime.

Details of the Indictment

According to the DoJ’s announcement, Cartier, a descendant of Louis Cartier, allegedly coordinated with a Colombian drug cartel to import 100 kilos of cocaine and laundered hundreds of millions of dollars primarily through over-the-counter (OTC) USDT trades.

Money Laundering Techniques

Cartier allegedly employed shell companies to present them as legitimate businesses to financial institutions, using their accounts as unlicensed money transmitters. He managed to launder $14.5 million worth of USDT stablecoin before his arrest.

Stablecoins and Money Laundering

Stablecoins like USDT can be used for money laundering due to their stability compared to other cryptocurrencies. The pseudonymous nature of crypto transactions can make it challenging to trace funds.

Response from US Attorney Damian Williams

US Attorney Damian Williams emphasized the DoJ’s commitment to combating criminal activities and prosecuting international drug traffickers.

Tether’s Anti-Laundering Measures

Tether’s partnership with Chainalysis aims to enhance monitoring of USDT transactions, identifying wallets associated with risks or illicit activities. This collaboration is seen as a step towards transparency and security in the crypto market.

Collaboration with Law Enforcement

Tether has actively collaborated with law enforcement agencies to combat illicit activities. In a recent case, Tether assisted in seizing $1.4 million worth of USDT from a tech support scam network.