A Colombian cryptocurrency broker known as “Rey” has been sentenced to 160 months in federal prison for helping launder $14.5 million in drug proceeds using Tether’s USDT and participating in a cocaine importation conspiracy. The operation connected Colombian drug traffickers, an unlicensed American crypto exchange, and a web of shell companies. Prosecutors also secured a $14.75 million forfeiture order, while five co-defendants received prison sentences.
Key Takeaways
- Colombian crypto broker Leonardo Zuluaga Duque received 160 months in prison for laundering drug proceeds.
- Prosecutors traced $14.5 million in Tether’s USDT through American shell companies and Colombian businesses.
- Maximilien de Hoop Cartier’s unlicensed crypto operation transmitted more than $470 million in illicit proceeds.
Colombian Crypto Broker Gets 160 Months as USDT-Centric Drug Network Unravels
The operation has landed the broker more than 13 years behind bars. On Wednesday, Oct. 21, 2026, federal prosecutors announced that Leonardo de Jesus Zuluaga Duque, 63, received a 160-month prison sentence for his role in laundering approximately $14.5 million and conspiring to import cocaine into the United States. The case also exposed a much larger financial operation handling hundreds of millions of dollars.
From Colombian Drug Money to American Bank Accounts
Between May and November 2023, Zuluaga Duque worked alongside several associates to move roughly $14.5 million in drug trafficking proceeds through a cross-border cryptocurrency laundering network.
The operation had a straightforward financial playbook. Criminal proceeds were converted into the stablecoin USDT in Colombia, transferred to an American intermediary and exchanged for U.S. dollars. Those dollars then traveled through American shell companies before returning to Colombian businesses, where they were converted into pesos and distributed. At the center of the American operation was Maximilien de Hoop Cartier, an Argentine citizen who claimed connections to the famous Cartier jewelry dynasty.
Cartier operated an unlicensed cryptocurrency money-transmitting business through companies presented to banks as legitimate technology enterprises. Prosecutors stated that his operation processed more than $470 million in illicit proceeds, far exceeding the $14.5 million directly attributed to Zuluaga Duque’s laundering activities. Cartier previously pleaded guilty and received eight years in federal prison.
Cocaine Conspiracy Blows the Case Wide Open
The crypto transactions were only half the trouble. Federal investigators also connected Zuluaga Duque to an operation intended to bring cocaine from Colombia into New York. In November 2023, confidential sources working with law enforcement arranged a transaction involving approximately nine kilograms of cocaine paste. Prosecutors said the material was intended for processing into cocaine before delivery to the state of New York.
Adrian Fernando Areiza Ceballos delivered the narcotics to an undercover officer, while Zuluaga Duque collected a commission for helping arrange the transaction. The operation continued into February 2024, when investigators arranged another prospective purchase involving approximately 100 kilograms of cocaine paste. Colombian police subsequently executed search warrants and recovered roughly 111 kilograms.
By then, the heat was on. Colombian authorities arrested Zuluaga Duque and other defendants in Medellín on April 30, 2024, with the assistance of Interpol.
Prosecutors Crack Down on International Crypto Laundering
U.S. Attorney Jamie McDonald said the defendants exploited cryptocurrency, shell companies and traditional banking channels to move criminal proceeds across international borders. McDonald stated:
“The defendant and his conspirators operated a sophisticated international scheme to utilize cryptocurrency, a network of shell companies in the U.S. and Colombia, and numerous crypto accounts.”
The federal judge ordered Zuluaga Duque to forfeit $14,751,846, along with cryptocurrency associated with four addresses under his control. He also received five years of supervised release. All five co-defendants have now been sentenced, with prison terms ranging from three to eight years.
The case carries an awkward distinction for anyone portraying cryptocurrency as the entire laundering mechanism: The USDT transfers moved the value across borders, but conventional banks, shell companies and dollar transactions were indispensable to turning that value back into spendable Colombian pesos.