In a significant ruling, a federal judge in New York has sentenced Leonardo de Jesus Zuluaga Duque to 160 months in prison for his role in laundering drug money through cryptocurrency. According to the conclusions drawn in the analytical report, this decision highlights the increasing scrutiny of cryptocurrency's use in illicit activities.
Sentencing Announcement
The sentencing was announced by the U.S. Attorney's Office for the Southern District of New York on Wednesday. Judge Mary Kay Vyskocil not only imposed a lengthy prison term but also mandated five years of supervised release and the forfeiture of nearly $14.8 million.
Role in Money Laundering Scheme
Zuluaga Duque, identified as a crypto broker based in Colombia, was found to have played a supervisory role in a network that laundered approximately $145 million in Tether, a popular stablecoin, derived from drug trafficking activities between May and November 2023. The laundering scheme involved converting drug proceeds into Tether, which were then funneled through an unlicensed money transmission business before being exchanged for U.S. dollars.
Distribution of Laundered Funds
Following the conversion, the funds were transferred to various Colombian companies, where they were ultimately converted into pesos and distributed. With a prison term exceeding 13 years, Zuluaga Duque will face an additional five years of supervised release upon completing his sentence, underscoring the serious consequences of engaging in financial crimes linked to drug trafficking.
In a related case, Hollywood director Carl Rinsch was sentenced to 30 months in prison for misusing $11 million in Netflix funds, highlighting the risks associated with financial misconduct in the entertainment industry. For more details, see read more.
