A vast cryptocurrency laundering network linked to drug trafficking has been dismantled in Paris. Four people were indicted following suspicious transactions between Dubai, France and the United States. Investigators discovered that…
A vast cryptocurrency laundering network linked to drug trafficking has just been dismantled in Paris. Four people have been indicted as part of this shocking investigation which reveals the scale of criminal activities exploiting virtual currencies.
A criminal network between Dubai, France and the United States
According to sources close to the investigation, the acts were committed in France, Dubai and the United States. This network would have whitewashed several hundred thousand euros from drug trafficking, via cryptocurrency transactions. The extent of this illegal system was revealed thanks to the investigation into encrypted messaging Sky ECCused by many drug traffickers.
Investigators discovered suspicious messages mentioning Paris, which highlighted drug-related cash collection activity. Amounts of up to 900 000 euros for a single transfer were mentioned. These illicit funds were then laundered by the network via cryptocurrency transactions, for huge amounts.
A sophisticated cryptocurrency clearing system
The criminals allegedly collected cash in several European countries such as Spain, the Netherlands, the United Kingdom, Belgium and Italy. They then compensated them in cryptocurrencies, notably via the exchange platform Binancefor more 55 million USDT (a cryptocurrency backed by the dollar). The laundered funds were finally returned to traditional bank accounts.
Some cryptocurrency wallets, called walletswould have seen more than 248 million d’USDT. A colossal amount which testifies to the scale of the illegal activities of this criminal network.
Four indictments, including a woman in connection with ransomware
Among the four people indicted in this case, three of them were indicted on July 29, 2023: two French and one Ukrainian. The fourth, a woman born in Russia in 1986, was arrested on October 1 in Nice when getting off a flight from Dubai. She is suspected of helping to launder tens of millions of USDT and funneling ransomware ransoms to the United States, causing more than $1 million in damage.
During searches carried out in Nice and Marseille in July, investigators seized 71,000 euros in cash as well as luxury products. A fifth suspect, presented as the main objective, was arrested in Dallas in the United States on a French arrest warrant.
A convergence of criminal ecosystems combining laundering and cybercrime
According to the judicial authorities, this case illustrates the convergence of different criminal ecosystems, at the crossroads between drug trafficking, money laundering and cybercrime. Criminal organizations are increasingly exploiting cryptocurrencies to conceal the illicit origin of their funds and re-inject them into the legal economy.
Cryptocurrencies have become a popular tool for criminal networks to launder dirty money on a large scale, while bypassing traditional surveillance systems.
A source close to the investigation
This case highlights the new challenges facing authorities in the fight against financial crime in the digital age. The dismantling of this money laundering network linked to drug trafficking constitutes an important victory, but it also highlights the need to strengthen regulations and international cooperation to stem these illicit financial flows.
The investigation, carried out by theCentral Office for the Suppression of Serious Financial Crime (OCRGDF)continues to determine the full extent of this vast criminal network and identify possible other accomplices. The indictments of these four individuals mark a crucial step in the fight against cryptocurrency laundering and its connection with international drug trafficking.
This shocking case reminds us of the importance of vigilance regarding the misuse of cryptocurrencies for criminal purposes. It also highlights the key role of cross-border judicial cooperation in dismantling these sprawling networks that take advantage of the flaws in the global financial system.
