FBI Cracks Down on Crypto Money Laundering Scheme Involving Venezuelan National
In a major operation, the US Department of Justice has charged a 59-year-old Venezuelan national, Jorge Figueira, with laundering around $1 billion in illicit funds for criminals. The alleged money laundering scheme involved the use of multiple bank accounts, cryptocurrency exchange accounts, crypto wallets, and shell companies.
According to FBI Special Agent Reid Davis, the agency has identified approximately $1 billion worth of cryptocurrency that was laundered through crypto wallets used by Figueira and his operation, with individuals and businesses in various parts of the world being targeted.
The scheme primarily utilized stablecoin USDT issued by Tether on the Tron blockchain. This is particularly noteworthy as a recent report by Chainalysis found that stablecoins are increasingly being used for illicit purposes, accounting for 84% of such transactions after only making up 12% in 2020.
Figueira was quoted bragging about using USDT for money laundering during a phone call cited in court documents, stating that it is widely used for this purpose. The Venezuelan's use of the stablecoin is not isolated, as his country has been well-documented to have significant involvement with crypto, both by its regime and citizens.
Tether, which froze $182 million worth of USDT around a week ago, has stated its commitment to working closely with law enforcement agencies globally to combat criminal activity. The move comes after a recent report highlighted the massive increase in withdrawals from centralized crypto exchanges to the non-custodial Bitcoin network in Iran.
The case highlights the complex and often double-edged nature of cryptocurrency for authoritarian regimes and individuals living under such regimes. While these entities may use crypto to avoid restrictions imposed by other nations, they also utilize it to evade local restrictions and sanctions.
In response to growing concerns over illicit crypto transactions, Congress recently passed the GENIUS Act, which established a regulatory structure for dollar-pegged tokens in the US. Meanwhile, a pay-for-play allegation surrounds another stablecoin, USD1, linked to the Trump-affiliated World Liberty Financial.
As more entities enter the stablecoin market, it remains to be seen whether they will face significant scrutiny or be allowed to move freely despite continued instances of illicit use. The case against Figueira serves as a reminder that law enforcement agencies are actively monitoring and cracking down on such activities.
In a major operation, the US Department of Justice has charged a 59-year-old Venezuelan national, Jorge Figueira, with laundering around $1 billion in illicit funds for criminals. The alleged money laundering scheme involved the use of multiple bank accounts, cryptocurrency exchange accounts, crypto wallets, and shell companies.
According to FBI Special Agent Reid Davis, the agency has identified approximately $1 billion worth of cryptocurrency that was laundered through crypto wallets used by Figueira and his operation, with individuals and businesses in various parts of the world being targeted.
The scheme primarily utilized stablecoin USDT issued by Tether on the Tron blockchain. This is particularly noteworthy as a recent report by Chainalysis found that stablecoins are increasingly being used for illicit purposes, accounting for 84% of such transactions after only making up 12% in 2020.
Figueira was quoted bragging about using USDT for money laundering during a phone call cited in court documents, stating that it is widely used for this purpose. The Venezuelan's use of the stablecoin is not isolated, as his country has been well-documented to have significant involvement with crypto, both by its regime and citizens.
Tether, which froze $182 million worth of USDT around a week ago, has stated its commitment to working closely with law enforcement agencies globally to combat criminal activity. The move comes after a recent report highlighted the massive increase in withdrawals from centralized crypto exchanges to the non-custodial Bitcoin network in Iran.
The case highlights the complex and often double-edged nature of cryptocurrency for authoritarian regimes and individuals living under such regimes. While these entities may use crypto to avoid restrictions imposed by other nations, they also utilize it to evade local restrictions and sanctions.
In response to growing concerns over illicit crypto transactions, Congress recently passed the GENIUS Act, which established a regulatory structure for dollar-pegged tokens in the US. Meanwhile, a pay-for-play allegation surrounds another stablecoin, USD1, linked to the Trump-affiliated World Liberty Financial.
As more entities enter the stablecoin market, it remains to be seen whether they will face significant scrutiny or be allowed to move freely despite continued instances of illicit use. The case against Figueira serves as a reminder that law enforcement agencies are actively monitoring and cracking down on such activities.
$1 billion in crypto laundering scheme busted 
Tether freezing millions of dollars' worth of USDT is a big move 
. Guess that means they're taking their responsibilities seriously 
Congress just passed that GENIUS Act to regulate dollar-pegged tokens... hope it makes a difference 
. like, we knew stablecoins were a problem, but to see $1 billion laundered through them is just wild 
. and what's crazy is that it's not even a new player in the game, it was just another Venezuelan national who thought they could get away with it 
. it's like, we need to be more vigilant about this stuff so we can protect ourselves and others from these kinds of scams 
This whole thing just makes me think about how easily power can corrupt, even in the darkest of places. I mean, $1 billion is a crazy amount of money, and when you think about it being laundered through a system that's supposed to be transparent and secure... it's like, what does that say about us as a society? Are we just too trusting of these new-fangled technologies? 
I'm still in shock about this $1 billion money laundering scheme 
. And it's interesting that the GENIUS Act was passed in response to growing concerns about illicit crypto transactions 
. But what's going on with USD1? Is that another stablecoin with some sketchy connections? 
. It's just another example of how crypto can be both exciting and unpredictable 
.
meanwhile, this whole pay-for-play thing around USD1 is giving me major red flags 
.
It's heartbreaking to think about the impact his actions could have had on innocent people around the world.
As someone who's concerned about the safety of our digital communities, it's disheartening to see how some individuals (and even countries) exploit this space for their own gain 
It's a complex issue, but having transparency and accountability is crucial in keeping our digital spaces safe 
. I mean, Congress just passed that GENIUS Act to regulate stablecoins, but is it too little, too late? These scammers are gonna keep adapting until someone cracks down hard