TLDR
- Maximilien de Hoop Cartier received an eight-year prison sentence in the United States.
- Prosecutors said the crypto laundering network moved more than $470 million.
- Cartier pleaded guilty to unlicensed money transmission and bank fraud conspiracy.
- The court ordered Cartier to pay about $2.36 million in forfeiture.
- Prosecutors said shell companies helped move drug proceeds to Colombia.
A U.S. court has sentenced Maximilien de Hoop Cartier to eight years in prison. The case centered on a $470 million crypto laundering network. Prosecutors said the money came from drug proceeds and other crime funds. Cartier is a descendant of the Cartier luxury jewelry family.
Court Hands Down Eight-Year Sentence
The court sentenced Cartier after he pleaded guilty to two charges. These were operating an unlicensed money transmitting business and conspiracy to commit bank fraud. Prosecutors announced the sentence in a statement on Tuesday.
The case focused on an over-the-counter cryptocurrency exchange. Prosecutors said Cartier used it to move illicit funds through U.S. banks. The funds were later sent through a wider laundering network. They were ultimately withdrawn in local currency in Colombia.
The court also ordered Cartier to pay about $2.36 million in forfeiture. Prosecutors said the amount represented commissions he kept from the scheme. The court also ordered the forfeiture of certain shell company bank accounts.
Shell Companies Used To Move Crypto Funds
Prosecutors said Cartier used many U.S.-based shell companies. These companies held more than a dozen accounts at U.S. banks. Cartier allegedly told banks the firms worked in software publishing and development.
However, prosecutors said the businesses were used to receive and move criminal proceeds. They said Cartier used forged contracts, invoices, and records. These documents made the payments appear normal to banks.
Cartier received drug money in cryptocurrency, according to prosecutors. He then converted the crypto into cash. After that, funds were deposited into accounts linked to shell companies.
The money was then sent to other parts of the laundering network. Prosecutors said the system helped move funds from the United States to Colombia. The process hid the source of the money from banks.
Earlier Seizure Linked To The Case
The sentencing followed an earlier investigation from April 2021. In that matter, a court seized about $937,000 from Cartier’s shell accounts. Prosecutors said the money was tied to drug trafficking proceeds.
Cartier and his legal counsel later sought the return of part of the funds. They claimed the business had anti-money laundering and know-your-customer controls. Prosecutors said those claims and records were false.
Cartier later admitted to federal agents that he lied to banks. He said he misrepresented his status as a crypto exchange. That admission became part of the wider federal case.
Separately, French prosecutors have charged 88 people in related crypto crime matters. The group includes 10 minors. Those charges relate to kidnappings and extortions targeting cryptocurrency owners.
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