Maximilien de Hoop Cartier, a descendant of the renowned French luxury brand Cartier, has been apprehended by the United States Department of Justice (DoJ) on charges of money laundering involving cryptocurrency.
According to a recent indictment, Cartier stands accused of engaging in drug trafficking and using the popular stablecoin Tether (USDT) to launder funds. The accused, a direct relative of Louis Cartier, the founder of the prestigious watch and jewelry brand, is alleged to have ties to a Colombian drug cartel. He was said to have attempted to import 100 kilograms of cocaine and laundered millions of dollars through over-the-counter USDT trades.
In his illicit activities, Cartier utilized various shell companies posing as software and technology firms to carry out his operations. Through these company accounts, he reportedly laundered hundreds of millions of dollars in illicit proceeds using USDT, dollars, pesos, and other currencies.
The indictment further reveals that Cartier was operating the shell companies as unlicensed money transmitters. Prior to his arrest in Miami, he and his five accomplices managed to launder 14.5 million USDT.
As Cartier awaits sentencing in a Miami detention center, he faces multiple charges of criminal misconduct, including operating as an unlicensed money remitter, conducting transactions with proceeds from illegal activities, money laundering, and conspiracy to commit money laundering. His accomplices are currently detained in a prison in Colombia.
This development closely follows an announcement by Tether on May 2 regarding its intention to create a tool to monitor secondary market activity. Chainalysis, a blockchain intelligence firm, will spearhead the development of this tool, which aims to help identify transactions potentially linked to illicit activities such as terrorist financing.
Tether has previously collaborated with law enforcement to prevent illicit transfers involving USDT. The stablecoin issuer recently pledged to freeze assets associated with PDVSA following reports that the Venezuelan state-owned oil company intended to use USDT to evade U.S. sanctions.
For more on cryptocurrency-related money laundering, a major Russian exchange recently froze $4 million of user assets citing concerns over illicit financial activities.