The US Department of Justice (DoJ) has arrested Maximilien de Hoop Cartier, the successor to the French luxury brand Cartier, on charges of money laundering using cryptocurrencies.
On May 2 IndictmentThe accused has been accused of drug trafficking and money laundering using the popular stablecoin Tether (USDT).
A direct descendant of Louis Cartier, founder of the luxury watch, necklace and bracelet maker, the accused is allegedly involved with the Colombian drug cartel. He attempted to import 100 kilograms worth of cocaine and laundered millions of dollars through over-the-counter USDT trades.
Cartier used numerous shell companies to carry out its operations. These companies are reported as software and technology companies. Using these company accounts, the defendant laundered illicit proceeds worth hundreds of millions of dollars through USDT, dollars, pesos, and other currencies.
According to the indictment, Cartier was using shell companies as unlicensed money carriers. Before his arrest in Miami, he and five other accomplices managed to launder US$14.5 million.
Cartier is currently awaiting sentencing in a Miami detention center and will face four counts of criminal misconduct. His accomplices are being held in a Colombian prison.
He currently faces charges of running an unlicensed money transfer company, dealing in property derived from illegal activities, money laundering, and conspiracy to commit money laundering.
The indictment follows Tether's May 2 announcement regarding its plan to develop a tool to monitor secondary market activity. Blockchain intelligence company Chainalysis will lead the development of the new tool. The solution will allow the stablecoin issuer to identify transactions potentially linked to illicit categories such as terrorist financing.
In the past, Tether has actively worked alongside the law to crack down on illicit transfers using USDT.
Recently sourced stablecoin Pledge To freeze assets associated with PDVSA. The decision came in the wake of reports that Venezuela's state-run oil company plans to leverage USDT to evade US sanctions.