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UNIColombia and US arrest eight over $42m crypto drug money laundering
Colombia's attorney general says eight people were detained in raids across four locations, with US authorities alleging cartel drug proceeds were laundered through crypto tokens and small transactions.
Why it matters: The case shows Colombian and US authorities treating crypto rails as a core channel for cartel money laundering, with extradition proceedings now hanging over the suspects.
Key points
- Guillermo Carpio Cárdenas, known as "Gallo", was captured alongside six others in raids on Cajicá, Maicao, Barranquilla and Bogotá.
- Nassim Orfale Vasquez was indicted in New York and is accused by the IRS of processing over $42m in suspicious crypto transactions since 2018.
- The attorney general's office says those arrested will face extradition proceedings under Colombian law.
Colombia and the US have arrested eight people accused of laundering drug trafficking money through crypto networks, the Office of the Attorney General of Colombia announced on Wednesday. The operation was carried out with US intelligence authorities and involved police and army deployments in Cajicá, Maicao, Barranquilla and Bogotá.
Seven of those detained include Guillermo Carpio Cárdenas, known as "Gallo", named as the head of one group. The US District Court for the District of Puerto Rico alleges that group hid the source of drug proceeds using a deposit network, crypto tokens and smurfing, in which small transactions are used to avoid detection by financial intelligence units.
According to the IRS, Vasquez processed more than $42m in suspicious crypto transactions since 2018, and authorities are investigating whether a larger organisation operates from the Colombian coast.
The attorney general's office said those arrested will go through extradition procedures under Colombian law, with due process respected. President Abelardo de La Espriella has prioritised extraditions to the US, focusing on drug trafficking groups.
What to watch: Those arrested face extradition procedures under Colombian law, the attorney general's office says.
Live updates on NewsFeeds:AltcoinsDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)
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