Colombian Police Dismantle $42M Cryptocurrency-Linked Drug Trafficking and Money Laundering Ring

According to Bitcoin.com, Colombia’s Attorney General’s Office announced Wednesday that eight individuals suspected of using cryptocurrency to launder money for drug trafficking organizations have been arrested in coordination with U.S. intelligence agencies. Police and military forces carried out synchronized operations across four locations: Cali, Medellín, Barranquilla, and Bogotá. Among those detained were seven members, including the gang’s leader, Guillermo Carpio Cardenas (alias “Gallo”). The U.S. District Court for the District of Puerto Rico alleged that the syndicate obscured the origins of drug proceeds and evaded financial intelligence oversight through deposit networks, encrypted tokens, and smurfing. Another suspect, Nassim Orfale Vasquez, was apprehended in Barranquilla and has been indicted by the U.S. District Court for the Southern District of New York. According to the Internal Revenue Service (IRS), he processed over $42 million in suspicious cryptocurrency transactions since 2018, and authorities are currently investigating whether a larger money-laundering network operates along Colombia’s coastline.