Crypto, Shell Companies and Banks Supported Cross-Border Laundering
Federal prosecutors described an international money-laundering operation involving Zuluaga Duque and his co-defendants, alleging that the group used cryptocurrency, shell companies and traditional banking channels to move criminal proceeds across international borders. U.S. Attorney Jamie McDonald said the defendants exploited those channels to transfer value between the United States and Colombia while using companies and financial accounts to disguise the source of the money.
“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.”
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The court 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.
Cocaine-Paste Transactions Linked Colombian Supply to New York
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 to be processed 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.
Colombian authorities arrested Zuluaga Duque and other defendants in Medellín on April 30, 2024, with assistance from Interpol. The arrests followed the two cocaine-paste transactions and the Colombian police search operation that recovered more than 100 kilograms of narcotics.
Cartier’s Unlicensed Crypto Operation Processed More Than $470 Million
The case reporting also described Cartier, who operated an unlicensed cryptocurrency money-transmitting business through companies presented to banks as legitimate technology enterprises. Prosecutors said Cartier’s operation processed more than $470 million in illicit proceeds, a figure 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.
Why This Matters
The reported facts show that cryptocurrency was one component of a broader laundering system rather than the entire mechanism. USDT transfers moved value across borders, but conventional banks, shell companies and dollar transactions were indispensable to turning that value back into spendable Colombian pesos. The enforcement focus therefore extended beyond digital transfers to the financial infrastructure used to receive, convert and conceal criminal proceeds.
With all five co-defendants sentenced, the case has moved into the post-conviction phase. The relevant next-stage enforcement measures are the ordered forfeiture of $14,751,846 and associated cryptocurrency, along with Zuluaga Duque’s five-year term of supervised release. The Cartier proceedings separately underscore the scale of unlicensed cryptocurrency money transmission identified in the broader case reporting.
Frequently Asked Questions
What sentence and forfeiture did Zuluaga Duque receive?
Zuluaga Duque was ordered to forfeit $14,751,846 and cryptocurrency associated with four addresses under his control. He also received five years of supervised release. All five co-defendants were sentenced to prison terms ranging from three to eight years.
What did investigators find in the cocaine-paste investigation?
Investigators arranged a November 2023 transaction involving approximately nine kilograms of cocaine paste that was intended for delivery to New York. A second prospective transaction involved approximately 100 kilograms in February 2024. Colombian authorities subsequently executed search warrants and recovered roughly 111 kilograms before arresting Zuluaga Duque and other defendants in Medellín.
How was cryptocurrency used in the alleged money laundering?
Cryptocurrency was used to move value across international borders, while shell companies in the United States and Colombia and conventional banking channels helped convert the proceeds into spendable money. U.S. Attorney Jamie McDonald said the defendants used cryptocurrency, shell companies and numerous crypto accounts as parts of a sophisticated international scheme.
