Colombia-based broker sentenced to 160 months for laundering $14.5M in USDT
Leonardo de Jesus Zuluaga Duque, known as Rey, must also forfeit $14.75 million and crypto held in four addresses he controlled
A Colombia-based crypto broker is headed to a US federal prison for 160 months. That works out to a little over 13 years, for moving drug money through one of the most widely used stablecoins in the world.
Leonardo de Jesus Zuluaga Duque, who went by the nickname “Rey,” was sentenced on October 21, 2026, in a US District Court. Prosecutors tied him to the laundering of approximately $14.5 million in USDT and to a conspiracy to bring cocaine into the United States.
What the court found
The scheme ran from May to November 2023. In about seven months, that much money moved through the operation.
He did not act alone. Five accomplices worked alongside him, according to the research findings on the case.
The group used several tools to keep the money moving. These included crypto accounts, shell companies, and money transfers between the US and Colombia.
The drug side of the conspiracy involved importing about 9 kilograms of cocaine into the US. Set that against $14.5 million in laundered funds, and the financial operation looks far larger than any single shipment.
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Prison time was only part of the penalty. The court ordered Zuluaga Duque to forfeit $14.75 million. He must also give up digital assets held in four crypto addresses he controlled.
The road from Colombia to a US courtroom
Colombian authorities approved his extradition in early 2025, following a US request.
The Department of Justice highlighted the role of USDT as the main mechanism for moving the illicit funds. That framing matters. The DOJ singled out a specific stablecoin by name, rather than simply describing crypto in general terms.
What this means for crypto markets and compliance
For the broader crypto industry, the sentence is another data point in an ongoing story. US authorities are treating digital asset channels as a priority in drug cases.
Exchanges and financial institutions that handle crypto could face higher compliance costs as regulators sharpen their focus on illicit use.
A sentence of 160 months, a $14.75 million forfeiture, and the seizure of crypto from multiple addresses add up to a steep bill. The case shows that stablecoins do not put money out of reach once investigators connect wallets to people.
The combination of extradition, stablecoin tracing, and asset forfeiture could appear in future narcotics cases. The DOJ’s decision to name USDT so prominently suggests stablecoin flows will stay squarely in view of US prosecutors.