In a significant crackdown on global money laundering, a Venezuelan national faces charges in the U.S. for allegedly laundering $1 billion through an elaborate crypto scheme.
Story Snapshot
- A Venezuelan national charged with laundering $1 billion using crypto and bank accounts.
- The scheme involved crypto exchanges, private wallets, and shell companies.
- Part of a broader effort to target Venezuela-linked illicit finance channels.
- Highlights the role of crypto in sanctions evasion and financial crime.
The Alleged $1 Billion Crypto Laundering Scheme
The U.S. Department of Justice has charged a Venezuelan national with conspiracy to launder approximately $1 billion using bank accounts and cryptocurrency. The scheme reportedly involved the use of crypto exchanges, private wallets, and shell companies to obfuscate the origin of illicit funds. Authorities allege that these funds were linked to corruption and criminal activities, aiming to evade detection through complex crypto-enabled layering.
This case is a part of a larger U.S. initiative to clamp down on Venezuela-linked illicit finance, particularly focusing on the misuse of cryptocurrency channels amid increased sanctions on Venezuela. The Eastern District of Virginia, known for handling complex financial cases, is leading the prosecution, underscoring the gravity of the alleged crimes.
Background and Context
Since the late 2010s, Venezuela has been grappling with a severe economic crisis, compounded by U.S. sanctions targeting state entities and officials. The sanctions have limited Venezuela’s access to global banking, pushing it towards alternative channels such as cryptocurrencies. The Maduro government had even launched a state-issued cryptocurrency, the Petro, in 2018 to circumvent these sanctions. However, its lack of success has not deterred Venezuelan actors from employing other cryptocurrencies like Bitcoin as economic pressure-release valves.
Recent years have seen a sharp increase in Venezuela-related crypto flows, often used for sanctions evasion. TRM Labs reported that, in 2025, illicit crypto flows globally reached a record USD 158 billion, with Venezuela notably using crypto for state-linked activities. This case represents one of the largest crypto-integrated laundering schemes tied to an individual Venezuelan national charged in U.S. courts.
The Implications of the Case
This case has far-reaching implications for financial institutions and crypto exchanges. The increased scrutiny on Venezuela-linked accounts may lead to subpoenas and exam scrutiny, pushing some institutions to exit or restrict relationships with Venezuelan clients. For Venezuelan actors, the challenge of moving large sums through mainstream financial channels will likely increase, prompting a shift towards smaller-scale and more opaque platforms.
The case also highlights the vulnerabilities in financial systems exploited by sophisticated laundering schemes. The involvement of traditional banks, centralized crypto exchanges, and private wallets in this scheme emphasizes the need for enhanced due diligence and better screening for Venezuela-linked risks, including beneficial ownership and blockchain analytics.
Sources:
Venezuelan man charged in US with laundering $1bn in illicit funds
With Venezuela, Crypto Compliance Officers Largely in the Dark
Rumors Swirling About Venezuela Bitcoin, Crypto Experts Are Skeptical
Venezuelan National Charged with Laundering Approximately a Billion Dollars in Illicit Funds
