USDT Broker Sentenced to 160 Months in US Laundering Case
A Colombian crypto broker has been sentenced to 160 months in US prison for laundering drug proceeds through Tether (USDT) and conspiring to import cocaine. Prosecutors said Leonardo de Jesus Zuluaga Duque, known as “Rey,” helped lead a network that moved about $14.5 million in USDT from May to November 2023, working with five accomplices. The funds passed through an unlicensed money-transmission business, were converted into US dollars and routed through US shell companies to Colombian firms before being exchanged for pesos and distributed. The case shows how USDT transfers can be part of a broader laundering chain involving banks and businesses. A federal judge ordered Zuluaga Duque to forfeit $14,751,846, as well as cryptocurrency held in four addresses he controlled, and to serve five years of supervised release after prison. The forfeiture is a separate order and should not be added to the approximately $14.5 million in USDT transactions cited by prosecutors. Colombia approved his extradition to the US in early 2025. The case underscores law-enforcement scrutiny of USDT and blockchain tracing, but is unlikely to have a material effect on broad crypto prices.
Neutral
The case concerns alleged criminal use of USDT, but it does not indicate a problem with Tether’s reserves, redemption mechanism or ability to maintain its peg. The arrest, sentencing and asset forfeiture may prompt short-term attention to compliance risks and blockchain surveillance, but such enforcement actions have not generally caused sustained price moves in USDT. In the longer term, the case could add to regulatory pressure on crypto firms and reinforce monitoring of stablecoin transfers. Those effects may influence compliance costs and market access, but the news alone is unlikely to materially affect USDT’s price or stability.