Court Sentences Crypto Broker For Money Laundering
A federal judge sentenced a Colombia-based cryptocurrency broker to 160 months in prison for laundering illicit drug proceeds.
Updated on Oct. 21, 2026 in Drug Crime
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Leonardo de Jesus Zuluaga Duque received a 160-month prison sentence for operating a network that laundered drug money through Tether and shell companies. The court also ordered the defendant to pay $14.75 million in forfeiture.
Why it matters
The sentencing highlights federal efforts to dismantle international money laundering operations that utilize cryptocurrency to obscure drug trafficking profits. It underscores the ongoing challenges authorities face in tracking illicit funds transferred through unlicensed transmission networks.
In addition to his 160-month prison term, Zuluaga Duque was sentenced to five years of supervised release. The legal proceedings in New York also involved an unlicensed money transmitting business that processed over $470 million in total illicit funds.
The players
Leonardo de Jesus Zuluaga Duque
He is a Colombia-based cryptocurrency broker who used digital assets to launder proceeds from drug trafficking.
Maximilien de Hoop Cartier
He operated an unlicensed money transmitting business that processed hundreds of millions in illicit proceeds.
The details
Zuluaga Duque utilized a complex system of shell companies in the United States and Colombia to convert Tether into U.S. dollars. The operation was exposed after law enforcement coordinated a purchase of nine kilograms of cocaine paste in late 2023 and subsequently seized 111 kilograms of the substance in 2024.
Timeline
May 2023 to November 2023: The network laundered $14.5 million in Tether.
November 2023: Authorities coordinated a nine-kilogram cocaine paste purchase.
February 2024: Police seized 111 kilograms of cocaine paste.
October 21, 2026: Zuluaga Duque received his prison sentence.
Legal Context
This conviction reflects the expansion of federal regulatory enforcement against decentralized financial systems under the Bank Secrecy Act. Similar cases have increasingly targeted the intersection of digital asset exchanges and traditional money laundering statutes in this jurisdiction.
The dismantling of this network serves as a warning regarding the vulnerability of shell companies to criminal exploitation. Residents should note that federal agencies are continuing to track financial flows linked to international drug trafficking and money laundering.
The takeaway
This case demonstrates how investigators are adapting to the use of stablecoins like Tether in large-scale criminal money laundering networks. Individuals and businesses should remain vigilant against requests to process transactions through unlicensed third-party financial entities.
Further reading
For more information on national enforcement trends, visit the Drug Crime section.
Source note: This article includes information reported by The United States Department of Justice.
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