The United States has announced an indictment against alleged money launderers based out of California who supposedly moved money for the Sinaloa Cartel via money mules, large quantities of cash, cryptocurrency purchases, and collaboration with ‘Chinese underground money exchanges.’

The Department of Justice (DoJ) alleges that this operation moved over $50 million in proceeds from the sale of cocaine, methamphetamine, and fentanyl.

A total of 24 defendants were charged as part of the investigation, dubbed ‘Operation Fortune Runner’ by authorities.

The money laundering operation was supposedly led by Edgar Joel Martinez-Reyes, who helped the Sinaloa Cartel strike a deal with the ‘brokers’ who would help facilitate the scheme.

It relied on a variety of methods to try to clean the drug trade proceeds, including the aforementioned crypto, precious metals and gems, and bank accounts set up by a variety of different co-conspirators.

Additionally, a significant portion of the funds were transferred to ‘brokers’ in China who facilitate illicit transactions outside of the relatively locked-down financial system in the country. There is significant demand for US dollars in China, and these brokers can facilitate conversion into renminbi without funds actually leaving either country.

Read more: Another Chinese money laundering scheme tied to Deltec and Tether

Dollars from the cartels are effectively sold to individuals and businesses in China who want those dollars. The funds that are then in China can be used to purchase precursor chemicals and other materials for drug synthesis and trade.

Relying on brokers who operate across borders like this helps reduce the risk of seizure and detection for these money laundering networks.

The indictment charges the defendants with aiding and abetting the distribution of controlled substances and money laundering offenses. 

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post US busts alleged crypto money launderers for Sinaloa Cartel appeared first on Protos.

Authorities from Italy, Portugal, and Europol have carried out raids against two money mule recruiting networks allegedly working for crypto scammers police said lacked the expertise to launder over €10 million ($10.8 million).

Between May 21 and 27, Police raided properties across France, Italy, and Romania, detaining 11 suspects and the alleged mastermind behind the money laundering scheme. Fifteen house searches also seized crypto, jewelry, and electronic devices.

The money mule networks worked for an organized crime group that makes its crypto through ‘rip-deal’ scams. These operations see scammers targeting millionaires interested in property by pretending to be part of an international investment fund.

Europol said, “The criminals contacted the victims, scheduled an appointment at luxury restaurants or hotels, and instructed them to download applications to manage cryptocurrencies. As soon as the victims installed the app, the criminals used sophisticated technical tools to take control of the crypto wallets.” 

Read more: Another Chinese money laundering scheme tied to Deltec and Tether

Police discovered the mule networks after tracking the scammers’ crypto. Criminals pay money mules a commission to receive their funds and transfer them to an account controlled by another third party.

Europol claims the main perpetrators of the rip-deal crypto scams ‘lacked the technical expertise’ to launder their profits, which exceeded €10 million ($10.8 million), and reached out to the money mule networks for help. 

Money mules have become enough of a problem that Europol has rolled out its own #DontBeaMule campaign to help raise awareness about their use.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post Europol raids money mules who laundered $10M for crypto scammers appeared first on Protos.

Police in Australia have arrested seven individuals linked to a Chinese syndicate-controlled remittance company accused of laundering AU$228 million ($144 million) in illicit fiat and cryptocurrency.

The operation, dubbed Avarus-Nightwolf, saw more than 300 police officials carry out 20 search warrants across mainland Australia and seize over AU$50 million ($32 million) in property, luxury vehicles, and high-end goods. 

The multi-billion dollar Changjiang Currency Exchange is said to have been secretly operated by the Long River syndicate. 

According to the Australian Federal Police (AFP), money laundered by the Changjiang Currency Exchange “was linked to the exploitation of an investment application called MetaTrader, and other platforms dealing in foreign exchange and cryptocurrencies.”

It’s said the firm moved over AU$10 billion ($6.3 billion) in the past three financial years. And while most of the funds it dealt with are thought to be legal, the AFP claims that at least AU$228 million comes from scams, trafficking of illegal goods, and violent crimes. 

Read more: Another Chinese national arrested for $100M crypto scam in Australia

Operation Avarus-Nightwolf and Operation Wickham were established in August 2022 to investigate the syndicate. The AFP first took notice of the remittance firm after it updated and opened new Sydney shop fronts during COVID-19 lockdowns. 

Assistant Commissioner Stephen Dametto said the investigation was complex due to the fact that “this alleged syndicate was operating in plain sight with shiny shopfronts across the country — it was not operating in the shadows like other money laundering organisations.”

The Changjiang Currency Exchange also offered anti-money laundering law advice to customers in an attempt to appear law-abiding. It even hired a former government minister to promote the firm. 

Former minister Gary Hardgrave told the Australian Financial Review, “I was engaged to help spruik the business. I’m not involved in the day-to-day operations of the company.” The publisher says there’s no implication that Mr. Hardgrave committed any crime.

The seven charged individuals are expected to appear in Melbourne Magistrates’ Court on Thursday. 

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post Aussie cops bust Chinese-backed exchange linked to crypto laundering appeared first on Protos.

A Vietnamese man charged with washing up to $3 billion in bitcoin and crypto through money-laundering service ChipMixer, is still on the run and remains on the FBI’s most wanted list.

Minh Quốc Nguyễn, a cryptographic engineer with an electronic engineering background from Taiwan, was last month charged by the Justice Department (DoJ) with laundering money for ransomware scammers, darknet markets, fraudsters, and state-sponsored actors.

The DoJ also alleges that ChipMixer, created by Nguyễn to help criminals bypass know-your-customer and anti-money-laundering measures, was used by the Russian military, state-sponsored North Korean hackers, and a recently-collapsed exchange. This is possibly a reference to now-defunct crypto trading platform FTX.

Read more: Dutch police recover 90% of victim decryption keys in ransomware scam

The largest transfer of funds on the system is alleged to have taken place by North Korean hackers who used the system to launder over $700 million from Axie Infinity’s Ronin Bridge and Harmony’s Horizon Bridge in 2022 and 2020, respectively.

According to authorities, up to 152,000 bitcoin have made their way through ChipMixer with up to 1,900 bitcoin seized. Charges were filed against Nguyễn in Philadelphia and an FBI warrant was issued after an extensive international investigation conducted by European and US authorities and Interpol. The operation, which was headline news in Nguyễn’s native Vietnam, saw around $40 million worth of funds recovered.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on Twitter, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post ChipMixer creator accused of laundering $3B in bitcoin still wanted by FBI appeared first on Protos.