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Cryptocurrency is becoming a tool of the global criminal machine , and the problem is especially acute when it comes to drug trafficking. Newly released court documents reveal a stunning money laundering scheme in which the stablecoin Tether plays a central role.
The investigation began with an anonymous tip-off about suspicious activity by a man named D.K., who had a history of drug crimes. Agents turned their attention to his company, S&C Trucking LLC, registered at a residential address in Milwaukee that had never been known to carry out legitimate logistics activities.
The address itself was alarming: CCTV cameras, tightly closed blinds, and a complete lack of any visible activity pointed to a classic base for criminal activity.
Of particular interest was the black Dodge Ram 2500 pickup truck that D.K. used for transportation. After closely monitoring his routes, law enforcement officers discovered a direct connection to a large shipment of cocaine - 60 kilograms of the drug were hidden in a truck that, according to documents, was supposed to transport fiber optic cable.
The financial component of the criminal scheme looked no less sophisticated. In November, agents watched as a passenger from D.K.'s car carried a suitcase and a bag of cash into a JP Morgan Chase bank - $ 169,650 was immediately credited to the account of Redzien LLC.
Further investigation revealed the scale of the operation: Redzien's accounts at several banks processed suspicious transactions totaling more than $ 21 million, covering 21 US states. Bank of America even closed some accounts due to obvious suspicions of money laundering.
A key link in the criminal chain is Mexican businessman L.E.O.T., who is associated with the investment company Grupo Gueratti. Amazingly, he himself published his phone number on Facebook* in an ad about a missing cat - such carelessness became the decisive key to uncovering the criminal network.
A confidential source told investigators that Tether was sold cheaper in Mexico than on other markets precisely because everyone knew that these funds were obtained from drug trafficking. The criminals created an entire scheme: buying cryptocurrency cheaply in Mexico, and then reselling it in Colombia through exchange offices, virtual exchanges and P2P platforms with a significant margin.
Cryptocurrency transactions were conducted through the Binance exchange, where just one L.E.O.T. account rotated more than 15 million dollars. A characteristic feature of the scheme is the instant transfer of funds between different blockchain networks and instant cashing out in different cryptocurrencies.
The mechanism was so sophisticated that it usually took less than 24 hours: after receiving funds, the account owner immediately transferred them to other networks using various cryptocurrencies, mainly Ethereum. Binance was even forced to exclude some suspicious users.
Similar schemes were carried out in parallel with other cartels. FBI investigation materials documented the laundering of $ 52 million for the Mexican Sinaloa cartel through cryptocurrency brokers.
The international scale of the criminal activity is confirmed by documents about Chinese fentanyl producers who received payments in bitcoins from South American drug traffickers. The cryptocurrency made it possible to instantly transfer hundreds of thousands of dollars across state borders.
The platforms themselves are trying to counteract this practice. Binance claims to be closely cooperating with law enforcement agencies, and Tether claims to have already blocked about $ 2 billion in questionable transactions and helped 195 law enforcement agencies from 48 countries.
Tether itself emphasizes that, unlike cash, every cryptocurrency transaction is fully traceable and can be instantly blocked or transferred to law enforcement agencies. According to their data, they have already helped 195 law enforcement agencies from 48 countries and blocked about $2 billion in suspicious transactions.
However, the scale of the problem is obvious: cryptocurrency is becoming not just a financial instrument, but an entire parallel economic system for international crime. Technologies designed to make finance more accessible are paradoxically turning into the perfect weapon of evil.
The investigation began with an anonymous tip-off about suspicious activity by a man named D.K., who had a history of drug crimes. Agents turned their attention to his company, S&C Trucking LLC, registered at a residential address in Milwaukee that had never been known to carry out legitimate logistics activities.
The address itself was alarming: CCTV cameras, tightly closed blinds, and a complete lack of any visible activity pointed to a classic base for criminal activity.
Of particular interest was the black Dodge Ram 2500 pickup truck that D.K. used for transportation. After closely monitoring his routes, law enforcement officers discovered a direct connection to a large shipment of cocaine - 60 kilograms of the drug were hidden in a truck that, according to documents, was supposed to transport fiber optic cable.
The financial component of the criminal scheme looked no less sophisticated. In November, agents watched as a passenger from D.K.'s car carried a suitcase and a bag of cash into a JP Morgan Chase bank - $ 169,650 was immediately credited to the account of Redzien LLC.
Further investigation revealed the scale of the operation: Redzien's accounts at several banks processed suspicious transactions totaling more than $ 21 million, covering 21 US states. Bank of America even closed some accounts due to obvious suspicions of money laundering.
A key link in the criminal chain is Mexican businessman L.E.O.T., who is associated with the investment company Grupo Gueratti. Amazingly, he himself published his phone number on Facebook* in an ad about a missing cat - such carelessness became the decisive key to uncovering the criminal network.
A confidential source told investigators that Tether was sold cheaper in Mexico than on other markets precisely because everyone knew that these funds were obtained from drug trafficking. The criminals created an entire scheme: buying cryptocurrency cheaply in Mexico, and then reselling it in Colombia through exchange offices, virtual exchanges and P2P platforms with a significant margin.
Cryptocurrency transactions were conducted through the Binance exchange, where just one L.E.O.T. account rotated more than 15 million dollars. A characteristic feature of the scheme is the instant transfer of funds between different blockchain networks and instant cashing out in different cryptocurrencies.
The mechanism was so sophisticated that it usually took less than 24 hours: after receiving funds, the account owner immediately transferred them to other networks using various cryptocurrencies, mainly Ethereum. Binance was even forced to exclude some suspicious users.
Similar schemes were carried out in parallel with other cartels. FBI investigation materials documented the laundering of $ 52 million for the Mexican Sinaloa cartel through cryptocurrency brokers.
The international scale of the criminal activity is confirmed by documents about Chinese fentanyl producers who received payments in bitcoins from South American drug traffickers. The cryptocurrency made it possible to instantly transfer hundreds of thousands of dollars across state borders.
The platforms themselves are trying to counteract this practice. Binance claims to be closely cooperating with law enforcement agencies, and Tether claims to have already blocked about $ 2 billion in questionable transactions and helped 195 law enforcement agencies from 48 countries.
Tether itself emphasizes that, unlike cash, every cryptocurrency transaction is fully traceable and can be instantly blocked or transferred to law enforcement agencies. According to their data, they have already helped 195 law enforcement agencies from 48 countries and blocked about $2 billion in suspicious transactions.
However, the scale of the problem is obvious: cryptocurrency is becoming not just a financial instrument, but an entire parallel economic system for international crime. Technologies designed to make finance more accessible are paradoxically turning into the perfect weapon of evil.