The Division of Justice charged a Venezuelan nationwide this week for allegedly utilizing crypto exchanges in a $1 billion cash laundering scheme.
In line with the criticism, the funds moved out and in of the US. Outbound locations included “high-risk” jurisdictions comparable to Colombia, China, Panama, and Mexico.
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Prosecutors Element Multi-Step Crypto Fund Routing
In line with courtroom information, 59-year-old Jorge Figueira of Venezuela is accused of utilizing a number of financial institution accounts, cryptocurrency alternate accounts, non-public crypto wallets, and shell firms to maneuver and launder illicit funds throughout borders.
“By enlisting subordinates and conducting scores of transfers, Figueira sought to hide the character of the funds, doubtlessly facilitating felony exercise in quite a few nations,” FBI particular agent Reid Davis stated in an announcement.
Figueira allegedly adopted a multi-step course of that included changing funds into cryptocurrency and routing them by a community of digital wallets. The crypto belongings had been then moved by a structured sequence to obscure their origin.
He reportedly despatched the funds to liquidity suppliers to transform the cryptocurrency into {dollars}, then transferred the funds to his financial institution accounts and finally to the ultimate recipients.
The case in opposition to Figueira is at present underneath overview within the Japanese District of Virginia. US Legal professional Lindsey Halligan emphasised that the quantity of cash concerned represented substantial dangers to public security.
“Cash laundering at this degree allows transnational felony organizations to function, increase, and inflict real-world hurt. Those that transfer illicit funds within the billions ought to anticipate to be recognized, disrupted, and held totally accountable underneath federal regulation,” Halligan stated in an announcement.
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If convicted, Figueira faces as much as 20 years in jail.
That is one among a number of investigations which have emerged over the previous yr. Collectively, they spotlight the rising use of cryptocurrencies in facilitating illicit actions.
Illicit Crypto Flows Surge Regardless of Oversight
Cryptocurrency crime has reached an all-time excessive in 2025, and the pattern appears to proceed into the brand new yr.
In line with a latest Chainalysis report, illicit addresses obtained at the least $154 billion final yr. The determine represented a 162% improve from 2024.
Stablecoins, particularly, have been criminals’ most popular crypto asset. In 2020, Bitcoin accounted for roughly 70% of illicit transactions, whereas stablecoins accounted for under 15% of complete quantity.
5 years later, that sample has reversed. In 2025, stablecoins represented 84% of all illicit transaction quantity. Bitcoin’s use shrunk to only 7%.
In consequence, main stablecoin issuers have needed to intervene. On Sunday, Tether, the issuer of USDT, froze over $180 million in a single day on account of suspicious exercise detected throughout Tron-based wallets.
The episode additionally highlighted the rising coordination amongst regulation enforcement companies, stablecoin issuers, and blockchain analytics platforms.