Colombian Crypto Broker Gets 13 Years for $14.5 Million USDT Money Laundering Scheme
A Colombian cryptocurrency broker has received a 160-month prison sentence for participating in an international drug-money laundering operation involving Tether (USDT). U.S. prosecutors announced the sentence on October 21, 2026, following an investigation into cryptocurrency transactions and narcotics trafficking.
Leonardo de Jesus Zuluaga Duque, also known as “Rey,” helped move approximately $14.5 million in drug proceeds through cryptocurrency accounts and shell companies. U.S. District Judge Mary Kay Vyskocil imposed the sentence, equivalent to 13 years and four months in federal prison.
How the $14.5 Million USDT Laundering Scheme Operated
According to the U.S. Department of Justice, Zuluaga Duque supervised part of an international network that converted illegal proceeds into USDT. The operation relied on cryptocurrency transfers, unlicensed financial services, and businesses operating across Colombia and the United States.
Between May and November 2023, the network processed approximately $14.5 million in Tether linked to drug trafficking.
Zuluaga Duque worked with Erica Milena Lopez Ortiz to transfer USDT to Maximilien de Hoop Cartier, who operated an unlicensed money transmission business. Cartier converted the cryptocurrency into U.S. dollars and transferred the funds through American shell companies.
The money subsequently reached Colombian businesses, where participants converted it into pesos for distribution. Prosecutors said this arrangement allowed the network to move criminal proceeds through multiple financial channels.
Cocaine Trafficking Conspiracy Adds to Criminal Case
The investigation also uncovered Zuluaga Duque’s involvement in a cocaine trafficking conspiracy targeting the United States.
In November 2023, undercover investigators coordinated a transaction involving approximately nine kilograms of cocaine paste intended for eventual delivery to New York. Prosecutors said Zuluaga Duque received a commission for helping arrange the transaction.
Authorities later recovered approximately 111 kilograms of cocaine paste during searches conducted in Colombia in February 2024.
Court Orders Millions in Forfeiture
Beyond his prison sentence, Zuluaga Duque must serve five years of supervised release and forfeit $14,751,846. The court also ordered the forfeiture of cryptocurrency tokens previously held in four addresses under his control.
All five co-defendants have received prison sentences. Cartier previously received eight years for financial crimes involving more than $470 million in illicit transfers.
The case highlights how criminal networks can exploit stablecoins and traditional banking infrastructure to transfer illegal funds internationally. It also underscores the importance of anti-money laundering controls as cryptocurrency becomes increasingly integrated into global financial transactions.
