Heir to Cartier empire arrested for attempted money laundering using USDT

The United States Department of Justice (DoJ) has arrested Maximilien de Hoop Cartier, the successor to French luxury brand Cartier, on charges of money laundering using cryptocurrency.

According to the indictment dated May 2, the defendant is accused of drug trafficking and fund laundering using the popular stablecoin Tether (USDT).

The defendant, a direct descendant of Louis Cartier, founder of the luxury watch, necklace and bracelet manufacturer, is alleged to have ties to the Colombian drug cartel. He attempted to import 100 kilos of cocaine and laundered millions of dollars through over-the-counter USDT transactions.

Cartier employed multiple shell companies to run its operations. These companies were reported as software and technology businesses. Using these company accounts, the defendants laundered hundreds of millions of dollars worth of illicit proceeds through USDT, dollars, pesos and other currencies.

According to the indictment, Cartier was using shell companies as unlicensed money transmitters. He, along with five other accomplices, managed to launder 14.5 million USDT before being caught in Miami.

Cartier is currently awaiting sentencing in a Miami detention center and will face four counts of misconduct. His accomplices are being held in a prison in Colombia.

He currently faces charges of operating an unlicensed money transmitter, dealing in property obtained from illegal activities, money laundering and conspiracy to commit money laundering.

The indictment closely follows Tether’s May 2 announcement of plans to develop a tool to monitor secondary market activity. Blockchain intelligence company Chainaliz will lead the development of the new tool. The solution will allow the stablecoin issuer to identify transactions potentially associated with illegal categories such as terrorist financing.

In the past, Tether has actively worked to comply with the law to prevent illegal transfers using USDT.

The stablecoin issuer recently pledged to freeze assets linked to PDVSA. This decision comes after reports that the Venezuelan state oil company plans to leverage USDT to evade US sanctions.