Tue, May 07, 2024 at 19:05

• 

  Kang-hoon

  • Good day, Annie.

  • I have some news about a money laundering case involving cryptocurrencies.

  • The U.S.

  • Attorneys Office for the Southern District of New York has charged three Colombian nationals and a supposed descendant of the Cartier watch and jewelry-making family.

  • 
• Annie

  • Oh, really?😮 That sounds serious.

  • What exactly did they do?

  
• 

  Kang-hoon

  • According to the indictment, these four individuals are part of a network that laundered millions of dollars worth of the stablecoin Tether (USDT).

  • This money allegedly came from drug trafficking.

  • 
• Annie

  • Wow, that's a lot of money.😱 How did they manage to launder such a large amount?

  
• ADward

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• 

  Kang-hoon

  • The network used a system of money laundering brokers and shell companies in the US, Colombia, and elsewhere to launder crime proceeds through the US to Colombia.

  • From May to November 2023, they used this network to launder approximately $14.5 million in Tether.

• Annie

  • That's quite an elaborate scheme!🤔 And what role did this Cartier descendant play in all this?

  
• 

  Kang-hoon

  • Maximilien de Hoop Cartier operated an over-the-counter (OTC) crypto exchange while controlling and operating US-based shell companies that held bank accounts at various US lenders.

  • He misrepresented the true nature of these companies to the banks, claiming they were in the software or technology business when they were actually used for an unlicensed money remitting business related to the operation of a cryptocurrency exchange.

• Annie

  • So, he was basically running an illegal business under the guise of a legitimate one?😡 That's pretty deceptive.

  
• 

  Kang-hoon

  • Yes, that's correct.

  • From January 2020 to the present, Cartier's unlicensed money-transmitting business executed hundreds of millions of dollars worth of unlawful transactions and laundered hundreds of millions in criminal proceeds, including drug trafficking proceeds.

• Annie

  • That's shocking.😨 What will happen to them now?

  
• 

  Kang-hoon

  • They are now facing charges for conspiring to commit money laundering.

  • If convicted, they could face severe penalties.

• Annie

  • I see.😞 Is this news bad for the crypto market?

  
• 

  Kang-hoon

  • In the short term, it could be seen as bad news.

  • It highlights the risks and potential misuse of cryptocurrencies for illegal activities.

  • However, it also underscores the importance of regulatory oversight in the crypto market to prevent such abuses.

  • Upon comprehensive consideration, this news is perceived as a 😱Bearish.