Tether Stablecoin Used by Drug Cartel Money Smugglers, DOJ Claims

Tether Stablecoin Used by Drug Cartel Money Smugglers, DOJ Claims

Gate Trade News Saturday, October 17, 2020 16 0

The United States Department of Justice yesterday unsealed documents about a Latin American drug-smuggling, money-laundering bust, in part facilitated by the US dollar-pegged stablecoin, Tether. 

 

Six were arrested, five of them born in China and living in Latin America or the US; one lived in Hong Kong. A Virginia court filed charges against Xizhi Li (aka “Z,” “AKA “Piglet”); Jianxing Chen (aka “Big Brother Heng”, aka “John”); Jiayu Chen (aka “John’s Brother in-law”); Jingyuan Li; Eric Yong Woo; and Tao Liu (aka “Antony/Jason/Lucas Liu”). 

 

The documents, filed on September 24, allege that the six spent the last 12 years laundering “millions” for drug cartels. 

 

They allegedly picked up money that others made from selling cocaine in parking lots and hotels—and then moved the money between bank accounts, casinos and businesses.