TechFlow News, April 29: According to The Block, a U.S. court sentenced Maximilien de Hoop Cartier—a descendant of the Cartier jewelry family—to eight years in prison for operating an unlicensed over-the-counter cryptocurrency exchange. Prosecutors stated that the exchange funneled over $470 million in drug proceeds through U.S. bank accounts to Colombia.
Prosecutors alleged that Maximilien de Hoop Cartier falsely claimed his companies engaged in software publishing and development. In reality, these entities were used to receive and transfer drug money and other illicit proceeds: drug funds were received in cryptocurrency, converted into fiat currency, deposited into shell company accounts under his control, and then transferred to other nodes within the money-laundering network. Ultimately, these funds were withdrawn in Colombian pesos in Colombia. In addition to imprisonment, Maximilien de Hoop Cartier was ordered to pay a fine of approximately $2.36 million—representing commissions he earned from participating in this fraud scheme. The court also ordered the forfeiture of specific bank accounts held in the names of shell companies used in the fraudulent scheme.
