Cartier operated an unlicensed cryptocurrency money-transmitting business through companies presented to banks as legitimate technology enterprises. Prosecutors stated that his operation processed more than $470 million in illicit proceeds, 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.
Cocaine Conspiracy Blows the Case Wide Open
The crypto transactions were only half the trouble. 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 for processing 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.
By then, the heat was on. Colombian authorities arrested Zuluaga Duque and other defendants in Medellín on April 30, 2024, with the assistance of Interpol.
Prosecutors Crack Down on International Crypto Laundering
U.S. Attorney Jamie McDonald said the defendants exploited cryptocurrency, shell companies and traditional banking channels to move criminal proceeds across international borders. McDonald stated:
“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.”
The federal judge 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.
The case carries an awkward distinction for anyone portraying cryptocurrency as the entire laundering mechanism: The $USDT transfers moved the value across borders, but conventional banks, shell companies and dollar transactions were indispensable to turning that value back into spendable Colombian pesos.
