Colombian National Indicted in Alleged $135 Million Stablecoin Money-Laundering Scheme

A Colombian national has been indicted in the United States over an alleged money-laundering conspiracy involving approximately $135 million in suspected narcotics proceeds, shell-company bank accounts, cryptocurrency exchanges, stablecoins and 207 Colombian bank accounts.

William Andres Holguin Mendez, 40, was charged in a single-count federal indictment returned by a grand jury in Greenville, South Carolina. According to the indictment, the alleged scheme involved the movement of funds through conventional banking accounts before they were converted into stablecoin cryptocurrency, transferred to a foreign cryptocurrency exchange, converted into Colombian pesos and distributed across hundreds of bank accounts in Colombia.

The investigation began in August 2023, when FBI agents examined suspected international laundering of drug proceeds in the Greenville area. Investigators identified numerous bank accounts associated with shell corporations that were allegedly receiving proceeds from illegal narcotics sales. The funds were subsequently transferred from those accounts to a single account held with a cryptocurrency exchange based in the United States.

Customer identification information obtained from the US-based cryptocurrency exchange allegedly showed that Holguin Mendez was the sole owner of the account receiving the consolidated funds. Prosecutors allege that approximately $135 million in US dollars passed through this account between March 2023 and May 2024.

The alleged transaction route then moved from traditional financial services into digital assets. According to the indictment, funds transferred into the US cryptocurrency exchange account were converted into stablecoins before being transferred to an account at a cryptocurrency exchange based outside the United States. Customer information obtained from the foreign exchange allegedly identified Holguin Mendez as the sole owner of that account as well.

The cryptocurrency was subsequently converted into Colombian pesos, according to the allegations, with the resulting funds distributed among 207 Colombian bank accounts. The alleged movement therefore involved several stages and jurisdictions, beginning with bank accounts associated with US shell companies and ending with a broad distribution of Colombian fiat currency.

The case places customer identification records at both cryptocurrency exchanges at the centre of the alleged transaction chain. Information from the two platforms allegedly connected the US account used to receive funds from multiple corporate accounts with the foreign exchange account that received the stablecoins.

The indictment alleges that the shell-company accounts were used to receive proceeds generated from illegal narcotics sales before transferring those proceeds into the cryptocurrency exchange account. The US exchange was then allegedly used to convert the funds into stablecoins, while the foreign exchange was used for the subsequent conversion into Colombian pesos.

The alleged transactions took place over approximately 14 months. During that period, approximately $135 million passed through the account attributed to Holguin Mendez, according to federal prosecutors. The investigation was conducted by the FBI Columbia Field Office, the Drug Enforcement Administration and Homeland Security Investigations.

The case is separate from an earlier US prosecution involving Colombian nationals and a cryptocurrency-based money-laundering network operating between the United States and Colombia. In that 2024 case, prosecutors alleged that a network used US-based shell companies and an unlicensed cryptocurrency exchange to convert and transfer millions of dollars in drug-trafficking proceeds, including approximately $14.5 million in Tether during a period in 2023.

In the present case, however, the indictment concerns Holguin Mendez and the alleged movement of approximately $135 million through the identified account between March 2023 and May 2024. The indictment contains a single count charging conspiracy to commit money laundering.

Holguin Mendez remains detained pending trial. If convicted, he faces a maximum penalty of 20 years in federal prison. The charges contained in the indictment are allegations, and he is presumed innocent unless and until proven guilty beyond a reasonable doubt in court.

By fLEXI tEAM