Cartier empire successor apprehended for alleged endeavor to launder funds with USDT
Maximilien de Hoop Cartier, a descendant of the well-known Cartier luxury brand, has been arrested by the United States Department of Justice (DoJ) on charges of money laundering. The charges involve the use of cryptocurrency, specifically the popular stablecoin Tether (USDT). The indictment states that Cartier, who is a direct descendant of Louis Cartier, the founder of the luxury watch and jewelry maker, was allegedly involved with a Colombian drug cartel. He was accused of attempting to import 100 kilograms of cocaine and laundering millions of dollars through over-the-counter USDT trades.
To carry out his illegal activities, Cartier used multiple shell companies that were disguised as software and technology businesses. Through these companies, he laundered hundreds of millions of dollars in illicit proceeds using USDT, as well as dollars, pesos, and other currencies.
The indictment reveals that Cartier was using these shell companies as unlicensed money transmitters. Prior to his arrest in Miami, he and five other accomplices managed to launder 14.5 million USDT.
Cartier is currently awaiting sentencing at a detention center in Miami and will face four counts of criminal misconduct. His accomplices are being held in a prison in Colombia. He is currently facing charges for operating as an unlicensed money remitter, engaging in transactions involving property derived from illegal activities, money laundering, and conspiracy to commit money laundering.
The timing of the indictment coincides with Tether’s recent announcement on May 2, in which the stablecoin issuer revealed its plan to develop a tool to monitor secondary market activity. The development of this tool will be led by blockchain intelligence firm Chainalysis. The tool aims to help Tether identify transactions that may be associated with illicit categories such as terrorist financing.
Tether has previously worked closely with law enforcement to crack down on illicit transfers involving USDT. The stablecoin issuer recently made a commitment to freeze assets linked to PDVSA, the Venezuelan state-run oil company, following reports that PDVSA planned to use USDT to circumvent US sanctions.
In a separate incident related to money laundering, a major Russian exchange froze $4 million worth of user assets. The exchange cited concerns over money laundering as the reason for the action.
