An alleged money laundering ring is said to have used cryptocurrencies to finance Venezuelan oil and equipment for the Russian military. The group consists of at least seven members, two Venezuelans and five Russians. They were arrested. The criminals mainly used the largest stablecoin USDT for their system. This is according to an indictment by the US Treasury Department.
“The defendants were criminal accomplices of oligarchs who orchestrated a complex scheme to illegitimately procure US military technology and Venezuelan-sanctioned oil through a variety of transactions involving front companies and cryptocurrencies,” said US Attorney Breon S. Peace.
Transactions with Tether and weapons for Russia
According to the FBI, the money laundering ring operated through a network of mailbox companies, including Nord-Deutsche Industrieanlage GmbH. She allegedly bought parts for Russian military equipment from US companies, including semiconductors and microprocessors. These are used in combat aircraft and missile systems. The ring supplied the parts to Russian companies, which were sanctioned by the USA. According to the indictment, some of the components were found on the battlefield in Ukraine. Three defendants also traded 500,000 barrels of Venezuelan oil through USDT.
One of those arrested, Yury Orekhin, reportedly wrote to one of his co-conspirators: “No worries, no stress. As soon as we start investing, we will transfer immediately. USDT works as fast as SMS.” The money launderers are also said to have made a transaction worth over $3 million in unidentified cryptocurrencies. The accused face up to thirty years in prison.
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