Unsealed court documents highlight how drug cartels from Mexico and Colombia are leveraging cryptocurrency, particularly Tether (CRYPTO: USDT) and Bitcoin (CRYPTO: BTC), to launder tens of millions of dollars.
What Happened: The documents shed light on how criminal organizations, including the Sinaloa cartel, have turned to stablecoins and blockchain technology to move wealth across borders, according to a report from 404 Media.
Benzinga has reached out to Tether CEO Paolo Ardoino for comments.
One confidential source disclosed to investigators that cartels purchase USDT in Mexico at below-market rates, given its association with drug proceeds.
“The current trend was to purchase USDT from Mexico-based groups at a cheaper rate than the market price and then sell the USDT in Colombia,” the source said.
These transactions reportedly take place through currency exchanges, peer-to-peer networks and over-the-counter (OTC) trades.
The court filings revealed substantial cryptocurrency activity linked to these cartels.
A Binance account under investigation processed over $15 million between May 2020 and …
Full story available on Benzinga.com