Colombian Cryptocurrency Broker Sentenced for Money Laundering
A Colombian cryptocurrency broker, known as Leonardo de Jesus Zuluaga Duque, has been sentenced to 160 months in federal prison due to his involvement in laundering over $14.5 million linked to drug trafficking and a cocaine smuggling plot. The 63-year-old’s conviction, announced on October 21, 2026, came after prosecutors outlined a sophisticated international money-laundering scheme that utilized the stablecoin USDT and a network of shell companies.
Details of the Money Laundering Scheme
From May to November 2023, Zuluaga Duque collaborated with accomplices to facilitate the movement of drug proceeds out of Colombia, converting the illicit earnings into USDT before routing them through an unlicensed American cryptocurrency exchange and ultimately into U.S. dollars. This money was then funneled through various shell companies in the United States, before its eventual transformation back into Colombian pesos for distribution.
At the heart of this operation was Maximilien de Hoop Cartier, an Argentine national claiming ties to the renowned Cartier jewelry family. Cartier’s venture operated clandestinely, disguising itself as a legitimate technology firm while performing extensive transactions with illicit origins, reportedly handling over $470 million, significantly overshadowing Zuluaga Duque’s direct activities.
Involvement in Cocaine Trafficking
Beyond the financial crimes, Zuluaga Duque was implicated in a broader conspiracy to import cocaine into New York. In November 2023, law enforcement sources coordinated with undercover agents to conduct a cocaine transaction involving nine kilograms of paste. Following this, Zuluaga Duque earned a commission while facilitating further drug deals. In February 2024, authorities intervened, uncovering plans for a larger shipment of approximately 100 kilograms of cocaine paste and seizing around 111 kilograms in subsequent raids.
Arrest and Sentencing
Zuluaga Duque was arrested in Medellín on April 30, 2024, in a joint operation with Interpol. U.S. Attorney Jamie McDonald remarked on the complexity of the scheme, highlighting the exploitation of cryptocurrency alongside traditional banking systems and shell companies to facilitate their operations across borders.
In addition to his prison sentence, Zuluaga Duque was ordered to forfeit nearly $14.8 million, associated cryptocurrencies from multiple addresses, and will face five years of supervised release following his incarceration. The case has also seen prison sentences for five co-defendants, with terms ranging from three to eight years.
Implications for Cryptocurrency and Financial Systems
This case illustrates the dual role of cryptocurrencies in illicit activities. While USDT transactions were crucial for moving money internationally, traditional banking methods and shell corporations were still vital in converting assets back into local currency, underscoring the role of established financial systems in modern laundering schemes.
